Sun Pharma Advanced Research Company (Sparc) has initiated a significant restructuring exercise that will see its overall workforce reduced by about 40 per cent, with the impact largely concentrated in the US. The company expects its employee strength to decline to 246 by FY27, compared with 409 employees in FY24. The reduction has been carried out in phases over a three-year period.
As part of the operational reset, Sparc is also consolidating its laboratory footprint. Research operations, earlier spread across four locations, will now be streamlined into two centres based in Vadodara and Mumbai. The consolidation is aimed at improving efficiency and lowering fixed costs.
The company has indicated that focused cost- optimisation measures have already resulted in annual savings of around $10 million. These efforts are intended to strengthen operational efficiency and support long-term financial sustainability, although details of employee payout or restructuring costs have not been disclosed.
Alongside workforce rationalisation, Sparc is recalibrating its research approach. The company plans to move away from a fully captive research model to a hybrid structure. While core research capabilities will remain in-house, select activities will be outsourced to clinical research organisations and contract development and manufacturing partners.
The restructuring is not linked to broader uncertainties in the US pharmaceutical ecosystem or potential tariff risks. Instead, it follows earlier capacity expansion in the US that was aligned to expectations around a specific product, which did not materialise as planned.
Sparc currently carries outstanding debt of about $46 million, well within its approved borrowing limit. Looking ahead, the company is finalising a resourcing plan for FY27 and FY28, supported by promoter-backed funding and internal cash generation.
1 Comment
40% workforce cut ek serious issue hai. Employees ke future ke liye company ko responsible approach leni chahiye.