Dr. Reddy’s Laboratories has reportedly launched a significant cost-cutting initiative aimed at reducing workforce-related expenses by 25 per cent. The move comes despite the pharmaceutical giant’s substantial investment in employee upskilling and training in recent years.
According to internal sources cited in a recent report, several high-salaried employees, including those earning over Rs 1 crore annually, have been asked to resign. Employees aged between 50 and 55, particularly in the research and development (R&D) division, have reportedly been offered voluntary- retirement packages.
The company is also said to be considering shutting down its digital therapeutics’ unit, while its nutraceuticals division may be downsized. Overall, the initiative could impact 300–400 roles across the organisation.
As of 31 March, 2024, Dr. Reddy’s employed 26,343 individuals globally, including 21,757 permanent staff. The company hired 6,281 employees in FY24 and reported a median salary of Rs 6 lakh. In the same fiscal year, it spent Rs 5,030 crore on employee benefits and Rs 39.2 crore on training and development, with 92 per cent of staff receiving skill upgrades.
If implemented fully, the workforce cost reduction could save the company about Rs 1,300 crore annually, based on FY24 spending levels.
