Novartis is preparing a companywide restructuring aimed at reducing layers of management and bureaucracy, Chief Executive Daniel Vasella said in an interview with the WSJ.
Dr. Vasella, a Swiss physician whose views on the pharmaceutical business are closely watched, said Novartis must become less bureaucratic to handle new challenges facing the drug industry: aggressive competition from generics companies; increasingly safety-conscious regulators; and more cost-conscious payers such as state health-care systems and insurers.
Novartis plans to disclose more about the restructuring by mid-December and elaborate further in February, Dr. Vasella said. The restructuring will involve some job cuts.
One new rule Dr. Vasella has set: There should be no more than six layers of employees in any Novartis division, from the lowest-ranking person up to the division head. Novartis has four divisions: pharmaceuticals, generics, vaccines and diagnostics, and consumer health, which includes over-the-counter medicines.
More at the WSJ
Dr. Vasella, a Swiss physician whose views on the pharmaceutical business are closely watched, said Novartis must become less bureaucratic to handle new challenges facing the drug industry: aggressive competition from generics companies; increasingly safety-conscious regulators; and more cost-conscious payers such as state health-care systems and insurers.
Novartis plans to disclose more about the restructuring by mid-December and elaborate further in February, Dr. Vasella said. The restructuring will involve some job cuts.
One new rule Dr. Vasella has set: There should be no more than six layers of employees in any Novartis division, from the lowest-ranking person up to the division head. Novartis has four divisions: pharmaceuticals, generics, vaccines and diagnostics, and consumer health, which includes over-the-counter medicines.
More at the WSJ
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