BASEL, Switzerland (AP) — Novartis AG will cut 2,500 jobs worldwide by 2010 in an attempt to save $1.6 billion, the drug maker said Thursday.
The company said it would take a restructuring charge of about $450 million (306 million euros) in the fourth quarter of 2007.
Novartis already had announced in October that it would cut 1,260 jobs in U.S. pharmaceuticals marketing and sales. The new cuts represent about 2.5 percent of Novartis' global work force.
''We have taken the opportunity given the short-term down-cycle in our pharmaceuticals business to initiate this project,'' Chief Executive and Chairman Daniel Vasella said. ''This will simplify our organization and redesign the way we operate.''
Novartis said in October that its third-quarter earnings more than tripled from large divestments, but poor pharmaceuticals sales meant 1,260 U.S. job cuts and a reorganization of its divisional management.
Net profit was boosted by the sale of its Gerber baby foods and Medical Nutrition units to Nestle SA. Without the divestments, Novartis' profit fell 12 percent in the July-September period.
The company has struggled with increased regulatory demands and stronger competition from generics in the United States. It says it has partly balanced these setbacks through strong growth in its vaccines and diagnostics division, and sales of its own generic drugs.
The company makes hypertension drug Diovan, leukemia drug Gleevec — known as Glivec in Europe — and breast cancer treatment Femara, among others.
The Basel-based pharmaceutical said Thursday it would focus on engineering new drugs. It also said it would streamline its units, and improve its sales force organization to begin expanding its presence in emerging markets such as Africa, Central Asia and Southeast Asia.
Novartis shares have slipped more than 8 percent this year.
They were up 1.8 percent at 65.20 Swiss francs ($57.59) in Zurich trading.