Hyderabad based pharma giant Dr. Reddy’s laboratories firmly rejected media reports claiming that the company major is slashing workforce related costs by 25 per cent.
The company’s response came after media reports surfaced alleging that the drug producer was planning to reduce manpower costs amid margin pressures. Media reported, citing sources, also alleged that high-earning employees were being laid off, while some in the 50–55 age group were being offered voluntary retirement, especially in the R&D division.
Dismissing the claims, Dr. Reddy’s said in an official exchange filing that the information was “factually incorrect” and denied any such cost-cutting measure.
“We wish to clarify that the said news is factually incorrect. We categorically deny the claim of a 25% workforce cost reduction and the other claims mentioned in the said news article.”
The company also added that it does not comment on market speculation and remains committed to timely disclosures of any material developments, as required by regulatory norms.
Earlier media reports had suggested that the alleged workforce cost reduction could impact between 300 and 400 employees and potentially save the company up to Rs 1,300 crore annually. The move was seen as a response to weak performance in some of the company’s recent ventures, such as its partnership with Nestlé in nutraceuticals and its push into digital health.
In the third quarter of FY25, Dr. Reddy’s reported employee benefit expenses of Rs 1,367 crore, up from Rs 1,276 crore in the same quarter last year. During FY24, the company hired over 6,200 people and invested Rs 39.2 crore in training and development.