Mon Apr 14 16:40:00 UTC 2025: ## Dr Reddy’s Laboratories Cuts Costs with Layoffs and Early Retirement Offers
**New Delhi –** Pharmaceutical giant Dr Reddy’s Laboratories is reportedly undertaking a significant restructuring, aiming to reduce workforce costs by approximately 25%, or roughly ₹1,300 crore annually. The cost-cutting measures, according to multiple media reports, include layoffs of employees earning over ₹1 crore per year across various departments and voluntary retirement offers to research and development employees aged 50-55.
The company has not yet responded to requests for comment. However, sources suggest the move is a response to underperformance in recent ventures, such as the joint venture with Nestle in nutraceuticals and investments in digital therapeutics. Further restructuring, including a potential shutdown of the therapeutics division and downsizing within the nutraceuticals arm, is anticipated. Estimates suggest that 300-400 employees may be affected.
This restructuring comes despite Dr Reddy’s reporting a 7% increase in employee benefits expenses to ₹1,367 crore in Q3 FY25 compared to the previous year. The company significantly increased its workforce in FY23-24, hiring 6,281 individuals and investing ₹39.2 crore in training and development.
The layoffs at Dr Reddy’s reflect a broader trend of workforce reductions globally, attributed to economic uncertainty and the rise of artificial intelligence. As noted by Bombay Shaving Company CEO Shantanu Deshpande, employees in their 40s, often the highest earners, are disproportionately affected by these measures.
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