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After acquiring Ranbaxy for $3.2 bn, Sun Pharma cuts staff in R&D division

Thursday, Jul 30, 2015

Sun Pharmaceutical Industries is cutting staff again as it digests the $3.2-billion acquisition of Ranbaxy Laboratories. Facing the axe this time are research and development staff, a move that comes a month after about 150 senior executives were asked to leave.

Close to 15 employees from the R&D department are to exit as Sun integrates a combined staff base that's 30,000 strong. Among the erstwhile Ranbaxy executives who left in the earlier round were the head of India operations, the chief financial officer and the vice-president of marketing among others. Sun said it's trying to handle the transition as sensitively as possible.

"A thorough assessment has been made of current overlaps across the organisation," a Sun spokesperson said. "While all attempts have been made to ensure that most employees are accommodated in various positions, there will be a few who we need to help in the process of actually transi tioning out of the organisation."

The acquisition, completed in March, has faced several challenges.

"We have to be realistic and prepare for adverse news ahead," managing director Dilip Shanghvi told analysts on the July 20 conference call. To achieve longterm synergy , it will look at selling low-margin, non-strategic businesses such as the active pharmaceutical ingredients division. On Wednesday, Sun closed at 830 on BSE, up 1.05%.

 

economictimes.indiatimes.com

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