2 weeks Ago By Moneycontrol
Pharmaceutical major Dr Reddy's Laboratories has begun a significant downsizing initiative as it aims to cut its workforce costs by nearly 25 percent, Business Standard reported citing people familiar with the matter. Several senior executives have been asked to resign, including many employees who earn over Rs 1 crore annually, the report further said. Staff in the age group of 50-55 years working in the company's research & development (R&D) division have been offered voluntary retirement, a source told the publication.
The person further said that several high-salaried individuals across various departments have already been asked to resign. Moneycontrol couldn't independently verify the report. This comes as Dr Reddy's Laboratories continues to take strategic moves to improve operational efficiencies, the report cited some analysts as saying.
The pharma company has recently forayed into nutraceuticals (though a joint venture with Nestle) as well as digital therapeutics, and has launched several new products. To support these new ventures, the company has strongly hired in the recent years. In case these new ventures are not doing well as predicted, then the company may have to downsize its teams, the report cited an analyst as saying.
The therapeutics division may altogether be shut down, while the nutraceuticals arm may see some downsizing. This may result in 300-400 people being let go, a source told Business Standard. Notably, the company had reported consolidated employee benefits expenses at Rs 1,367 crore in Q3 FY25.
This marked a rise of nearly 7 percent from the Rs 1,276 crore employee benefits expenses reported in Q3 FY24. Also read: Dr Reddy's gets over Rs 2,395 crore show cause notice from I-T authority Dr Reddy’s Laboratories shares have dropped nearly 19 percent so far in 2025. The shares closed 1.
46 percent higher at Rs 1,110 apiece on April 11..
