Novartis is set to cut up to 550 positions at its Stein facility by the end of 2027.
The pharmaceutical giant emphasised that the move is not connected to its recent expansion activities in the US.
“Novartis wants to further specialise in highly specialised medicine, which is injected. They intend to invest in this in Stein but only need half the staff for that,” Corinne Schaerer, Member of the Steering Committee for Industry at Gewerkschaft Unia, exclusively told Building Better Healthcare.
The reductions stem from the decision to end production of tablets and capsules and cease packaging of sterile medicines at Stein, reflecting a push toward streamlined, modernised manufacturing.
“The production of tablets and capsules will be moved to another site in Europe (they did not say which one). Also, the products which are still produced in Switzerland for the US will be produced solely in the US. For that, they [will] build a new site in North Carolina,” said Schaerer.
Schaerer said that the redundancies will start at the beginning of 2027 and continue through the end of 2027.
“There is a social plan in place which allows earlier retirement, retraining, as well as support finding another job, etc.,” said Schaerer.
At the same time, Novartis is investing $80m in its Schweizerhalle facility near Basel.
The investment will support new production technologies and is expected to create around 80 new jobs by the end of 2028.
The changes reflect what Novartis describes as an ongoing effort to streamline and modernise its global production footprint.
Reasons for the restructure
Regarding the reasons for restructure, Schaerer said: “[Novartis said] that they cannot increase efficiency further at Stein (by automation & optimisation) and the only cost factors are the salaries in Switzerland. So, they [will] move it to a country with lower salaries… Novartis calls this “procedure” their business model.”
“[This] is also to say that Novartis bought back a lot of their own shares, and this alone would be enough money to pay the workforce at Stein.”
The company explained that the overall investment across Swiss production sites will exceed $100m, including $26m at Stein dedicated to sterile dosage‑form production.
Importantly, the Stein site will continue to be recognised as a centre of excellence for sterile dosage forms and the commercial production of personalised cell therapies.
Even with the restructuring, Novartis pledges that Stein will continue producing specialised, personalised cell therapies for patients worldwide.
Background of US tariffs
The Swiss restructuring is happening alongside ongoing investment in US operations.
Novartis and its rival Roche have been expanding in the US after President Trump imposed 39% tariffs on certain Swiss goods.
A subsequent agreement between the US and Swiss governments reduced tariffs to 15%.
Despite the job cuts at Stein, Novartis’ dual approach signals a recalibration rather than a retreat from Europe.
Switzerland will remain a central hub for innovative manufacturing, while US operations grow to support global supply chain resilience.