Hyderabad-based pharmaceutical giant Dr. Reddy’s Laboratories is reportedly preparing to lay off a significant portion of its workforce as part of a cost-optimization strategy. Sources indicate that the company is targeting a 25% reduction in operational expenses, prompting moves to streamline its employee base.
As part of the initiative, the company has reportedly asked several high-salaried employees to submit voluntary resignations. It is understood that up to 25% of the total workforce may be affected. This includes some senior-level professionals earning annual salaries exceeding Rs 1 crore.
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Employees working in the Research and Development (R&D) division, particularly those aged between 50 and 55, are also being encouraged to opt for voluntary retirement, sources added. In total, approximately 400 employees could be impacted by the restructuring move.
The development comes at a time when the pharma major is facing regulatory scrutiny. Earlier this month, the Hyderabad wing of the Income Tax Department issued a demand notice to the company for Rs 2,395 crore. The notice pertains to a corporate restructuring process undertaken by the firm in 2022, with tax authorities seeking an explanation as to why the transaction should not be taxed.
Dr. Reddy’s Laboratories, which currently has a market capitalization of around Rs 92,000 crore, has yet to release an official statement regarding the layoffs.