Hyderabad, April 14, 2025 – Dr. Reddy’s Laboratories, a pharma heavyweight based in Hyderabad, has launched a major cost-cutting drive, aiming to trim workforce expenses by 25%, with senior executives earning over Rs 1 crore annually in the crosshairs. The move, reported Monday, sees high-salaried staff across departments—many in the 50-55 age bracket—asked to resign, while R&D employees are offered voluntary retirement, per Business Standard (Moneycontrol, April 13, 2025).
The shake-up could impact 300-400 workers, with whispers of shutting down the digital therapeutics unit and scaling back nutraceuticals (Livemint, April 14, 2025). “It’s about efficiency—streamlining for growth,” an industry source told The Economic Times (April 14, 2025). Dr. Reddy’s, posting Rs 8,358 crore revenue for Q3 2024 (up 16% YoY), faces pressure—shares dipped 19% in 2025, closing at Rs 1,110 Friday (Moneycontrol). A Rs 2,395 crore tax notice didn’t help (News18, April 14, 2025).
This isn’t new—Dr. Reddy’s cut hundreds in 2018 for “performance” (The Hindu BusinessLine, 2018). Now, with generics like Revlimid slowing and R&D costs up 24% (Hindustan Times, July 27, 2024), the axe falls again. X posts reflect unease—“Layoffs signal trouble,” one user noted—while others see a leaner future (post:5). The firm’s ventured into nutraceuticals with Nestle and digital therapeutics, but analysts warn of a weak US pipeline (Hindustan Times, May 7, 2024).
For India’s pharma hub, it’s a gut check—Hyderabad’s 50,000 pharma jobs face ripples (IBEF, 2024). High earners, often with 20-year tenures, are packing up, and younger techies on X fear a chilling effect (post:1). Will Dr. Reddy’s rebound or keep bleeding talent?
