Under CEO Paul Hudson, Sanofi is seeking to cut costs, among other goals. One route it’s considering? Job cuts, Reuters reports.
The drugmaker is weighing hundreds of layoffs, sources told the news service, and management plans to meet with staff representatives Friday and Monday. Sanofi representatives didn’t immediately respond to a request for comment.
Around 1,000 jobs in France could be in jeopardy, two sources told Reuters. The moves are part of Hudson’s “roadmap” for the company, but the announcement has been slowed by the COVID-19 pandemic, one said.
RELATED: How will Sanofi save €2B? Chopping support staff and ‘smart’ purchasing, for 2
After taking the helm in September, Hudson in December unveiled a new strategy for the drugmaker. Among the initiatives were an effort to save €2 billion in annual costs by 2022. To reach that level of savings, Sanofi planned to trim jobs in support functions, reduce manufacturing budgets, revamp purchasing, cut down on travel and more, Hudson said at the time.
The report of Sanofi’s layoff deliberations comes after multiple rounds of layoffs or early retirement campaigns in recent years. A year ago, the company laid off U.S. sales staffers in response to “changing market dynamics,” a spokeswoman said at the time. Before that, the company eyed job cuts in France, eliminated 400 positions in the U.S. and sought voluntary retirements in Japan, all before Hudson took the reins.
RELATED: Sanofi plans sales layoffs—again—in primary care, diabetes
Meanwhile, speaking to reporters ahead of an R&D day earlier this week, Hudson said Sanofi is focusing its R&D efforts on potential first- and best-in-class medications. The company has pledged to stop R&D in diabetes and cardiovascular disease areas, fields where Sanofi has a rich history but has faced increasing competition and sagging revenues in recent years.
The company has also put an emphasis on immunology blockbuster Dupixent, which Hudson says can generate €10 billion in peak sales through new indications and launches in new markets.
