Pharmaceutical Giant Takeda Faces Financial Uncertainty and Job Cuts in Switzerland

As a global pharmaceutical company, Takeda has been under immense pressure in recent years due to several factors. Despite being relatively unknown in Switzerland, Takeda has a significant presence in the country with almost 2,000 employees, making it one of the important employers in the local pharmaceutical industry.

However, the company’s profitability has deteriorated, and it is facing significant cost pressures that are leading to major job cuts at its European headquarters in Opfikon. Reports indicate that the company needs to cut costs by 5 to 25 percent due to high levels of debt from the acquisition of competitor Shire and the loss of patent protection for one of its key revenue drivers, Vyvanse.

To address these challenges, Takeda is focusing on refreshing its product pipeline and digitalizing its business processes. However, despite efforts to innovate and transform digitally, Takeda still lacks new high-sales products in the short to medium term and is lagging behind competitors in this area.

The future growth prospects for Takeda seem weak with analysts expecting little to no growth over the next four years. The company’s margins are also under pressure due to digitalization initiatives and cost-cutting measures that could impact thousands of jobs at its headquarters in Opfikon and production plant in Neuchâtel.

With a challenging road ahead, Takeda must find a way to improve profitability while navigating through financial difficulties, low growth prospects, and an ever-changing landscape in the pharmaceutical industry.