Novartis could cut about 130 jobs in Basel site relocation

ZURICH, Sept 2 (Reuters) - Novartis could cut about 130 jobs in Switzerland as it relocates laboratory activities and shuts down some production in Basel, the Swiss drugmaker said on Wednesday.

The company said it plans to transfer laboratories for biological cell banks, analytical testing procedures and technical development activities from Kleinbasel, an area of Basel, to its main campus in the city by the end of 2028.

As part of a previously planned relocation, Novartis will also stop small-scale production of biologics in Kleinbasel by the end of 2027. 

"We intend to move these activities to other existing biologics drug substance sites within our manufacturing network, specifically in Europe," the company told Reuters in an email.

The relocation aligns with the expiration of individual leases at the Kleinbasel site in 2029 and is part of a previously announced plan to establish a new biologics technical development centre on its main campus in Basel.

The relocation was first announced in 2022 and currently, there are around 200 people employed at the site in Kleinbasel, the company said.

Novartis has been investing heavily in sites in the United States as part of an industry-wide move to boost manufacturing in the country under pressure from the Trump administration. It plans to spend $23 billion to build and expand 10 facilities in the U.S. over the next five years.

The planned cessation of production in Kleinbasel and the resulting job cuts are subject to an information and consultation process, Novartis said.

It added that it was committed to supporting affected employees through measures such as job centres, early retirement, and a social plan that has been extended until the end of 2028.

(Reporting by Marleen Kaesebier in Zurich and Bhanvi Satija in London Editing by Dave Graham, Kirsten Donovan)