‘Factually incorrect’: Dr Reddy clears air amid workforce reduction rumors

Hyderabad -based pharma giant Dr. Reddy’s laboratories strongly dismissed media reports, claiming that the company was reducing the costs related to the major workforce by 25 percent.
The company’s response came after media reports, alleging that the drug manufacturer was planning to reduce the cost of manpower amid pressure from the margin. The media, citing sources, also alleged that high-earned employees were being discontinued, while voluntary retirement was being offered in some groups in the 50-55 age group, especially in the R&D division.
Rejecting the claims, Dr. Reddy said at an official exchange that the information was “factually wrong” and denied any such cost-cutting measure.
“We want to clarify that the above news is factually wrong. We clearly deny the claim of 25% workforce cost reduction and other claims mentioned in the said news article. ,
The company also said that it does not comment on the speculation of the market and is committed to the time of any physical development required by the regulatory criteria.
Earlier media reports suggested that the alleged workforce cost reduction could affect between 300 and 400 employees and potentially saved the company up to Rs 1,300 crore annually. The move was seen as a response to weak performance in some recent undertakings of the company, such as its partnership with Nestle in neutrasuticals and its push to digital health.
In the third quarter of FY25, Dr. Reddy’s reported employee availed Rs 1,367 crore, which was above Rs 1,276 crore in the same quarter last year. During FY24, the company hired more than 6,200 people and invested Rs 39.2 crore in training and development.