Pharmaceutical companies cut labor costs by 25%, even asking senior employees who earn Rs 1 crore to exit
Employees aged 50-55 who work in Dr. Reddy’s R&D (R&D) department have been given voluntary retirement, a report said. The pharmaceutical company currently has a market capitalization of Rs 92,316 crore.
Dr. Reddy’s layoffs: A business standard report says that after several reports of layoffs in the IT sector, Pharma Major Reddy’s Laboratory Co., Ltd. has now decided to cut its workforce by 25%. The goal is to reduce labor-related expenses by about 25%. Several senior executives were asked to resign, including many employees earning more than Rs 1 crore per year. The report said employees of the 50-55-year-old age group working in the pharmaceutical manufacturer’s research and development (R&D) department have been offered voluntary retirement. Dr. Reddy’s Laboratory Co., Ltd. is an Indian multinational pharmaceutical company based in Hyderabad. The pharmaceutical company has a market capitalization of Rs 92,316 crore.
“The internal directive is to reduce the costs associated with manpower by about 25%. Several senior employees in various departments were asked to resign. These include those who earn more than 10 million a year.” Earlier this month, the company received a presentation notice from the income tax authority (Assistant Assistant Commissioner for Income Tax, Hyderabad) that demanded more than Rs 23.95 crore in connection with the merger of Reddy’s Holding Ltd (DRHL). It asks companies to respond to why notice should not be issued to assess revenue allegedly avoiding tax revenues under the merger plan approved by the National Corporate Law Tribunal (NCLT) (NCLT) (April 5, 2022).
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Dr. Reddy’s laboratory Q3 results
The company announced in January this year that its after-tax consolidated profits increased by 2% year-on-year (PAT) to the quarter ended December 2024 (Q3) (Q3). The PAT for the third quarter of last year was Rs 1,3789 crore. Revenue from operating for the quarter was Rs 835,86 crore, with a 16% jump with Rs 72,148 crore posted in the December 2023 quarter.
