In a significant leadership overhaul, Hyderabad-based Indian multinational pharmaceutical company Dr Reddy’s Laboratories has reportedly laid off several top-paid senior employees as part of an ongoing restructuring initiative aimed at reducing workforce costs.
According to reports, the company is targeting a 25% reduction in workforce costs, focusing primarily on employees earning over Rs1 crore annually. The move is expected to generate annual savings of approximately Rs1,300 crore.
As of FY24, Dr Reddy’s Laboratories employed over 26,000 people globally, including 21,757 permanent staff. The company hired 6,281 employees during the year and spent Rs5,030 crore on employee benefits, with Rs39.2 crore allocated to training and development. The median salary rose 7% year-on-year.
Alongside the layoffs, the company has also reportedly extended voluntary retirement packages to select employees aged between 50 and 55, particularly in the Research & Development division.
This restructuring comes at a time when the company is preparing to announce its January–March quarter results for FY25 in May. Sources suggest that the layoffs may be tied to performance concerns in recent business ventures, including the company’s joint venture with Nestlé Health Science, where Dr Reddy’s invested over Rs734 crore for a 51% stake.
Further downsizing is reportedly being considered in the digital therapeutics and nutraceuticals divisions, potentially affecting an additional 300–400 employees.
The company has not issued an official statement on the restructuring, but reports from news agency IANS indicate the move is aimed at sharpening operational efficiency amid rising employee costs. In Q3 FY25, employee benefit expenses rose by 7%, from Rs1,276 crore to Rs1,367 crore.
