New Delhi— Pharmaceutical giant Dr. Reddy’s Laboratories on Monday denied media reports alleging that the company is planning a 25 percent reduction in workforce costs and targeting high-earning employees for layoffs.
The company called the report “factually incorrect” and categorically refuted the claims in a filing with the stock exchange.
“We wish to clarify that the said news is factually incorrect. We categorically deny the claim of a 25 percent workforce cost reduction and the other claims mentioned in the said news article,” Dr. Reddy’s said in the statement.
The company further noted that it does not respond to market speculation.
“In this regard, please note that the company does not comment on market speculations, and there is currently no such event or information which requires disclosure under Regulation 30 of the SEBI Listing Regulations,” the filing added.
Earlier, a media report claimed that Dr. Reddy’s had launched a significant cost-cutting initiative, asking several senior executives—particularly those earning over Rs 1 crore annually—to resign.
The report also alleged that the company had offered voluntary retirement packages to employees aged 50–55, mainly from the research and development division, and that approximately 300–400 employees could be affected.
The report suggested the alleged move was part of a broader strategy to enhance operational efficiency as the company expands into new business areas such as nutraceuticals—via a joint venture with Nestlé—and digital therapeutics.
Dr. Reddy’s, however, maintained that no such cost-cutting or layoff measures have been initiated.
The company emphasized that it has been actively hiring in recent years to support growth in its new business segments.
In fact, Dr. Reddy’s reported consolidated employee benefit expenses of Rs 1,367 crore in Q3 FY25—a 7 percent increase from Rs 1,276 crore in the same period of FY24.
The company also hired over 6,200 people in FY24 and invested nearly Rs 39 crore in employee training and development. (Source: IANS)
