Dr Reddy’s Layoffs | Pharma Major Cuts Workforce Cost by 25%, Employees Above ₹1 Crore Package Asked to Quit: Report

Mumbai: Dr Reddy’s Laboratories, a leading pharmaceutical company, has initiated a downsizing effort aimed at reducing workforce costs by 25%. This move comes as part of the company's strategy to enhance operational efficiency and streamline its business operations. According to reports, several high-salaried employees, including those earning over ₹1 crore annually, have been asked to leave the organisation.

Dr Reddy’s Laboratories Layoffs   

The layoffs primarily target employees in the age group of 50–55 years working in the Research & Development (R&D) division, who have been offered voluntary retirement packages. Additionally, other departments have seen high-salaried individuals being asked to step down.

Reports claim that this decision may impact 300–400 employees across various divisions. 

DR Reddy's Expansion

Dr Reddy’s has been expanding into new ventures, including nutraceuticals through a joint venture with Nestlé and Digital therapeutics. However, challenges in these areas may have prompted the company to reassess its workforce needs. The therapeutics division is reportedly facing a potential shutdown, while the nutraceuticals arm may undergo downsizing.

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This cost-cutting measure is expected to save the company approximately ₹1,300 crore annually, as it seeks to maintain double-digit growth and achieve 25% EBITDA margins. Reports also suggests that despite these efforts, Dr Reddy’s shares have seen a decline of nearly 19% in 2025, reflecting the challenges faced by the company in a competitive market.