Dr Reddy’s denies report of cutting workforce costs by 25%, calls in 'factually incorrect'

Pharmaceutical major Dr Reddy's Laboratories has denied the news report by Business Standard claiming it is looking at a 25 percent workforce cost reduction, calling it 'factually incorrect', in an official statement on April 14, adding that the company does not comment on market speculations.

"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," said Dr Reddy's. Business Standard had reported that several senior executives have been asked to resign, including many employees who earn over Rs 1 crore annually, a claim that has been denied by the company.

Dr Reddy's Laboratories has been taking strategic moves to improve operational efficiencies, the news report said, citing analysts. The pharma company has recently forayed into nutraceuticals (though a joint venture with Nestle) as well as digital therapeutics, and has launched several new products. To support these new ventures, the company has strongly hired in the recent years.

Notably, the company had reported consolidated employee benefits expenses at Rs 1,367 crore in Q3 FY25. This marked a rise of nearly 7 percent from the Rs 1,276 crore employee benefits expenses reported in Q3 FY24.