In a strongly worded rebuttal on April 14, pharmaceutical heavyweight Dr Reddy’s Laboratories officially dismissed recent claims suggesting a drastic 25% workforce cost reduction, labeling the news 'factually incorrect.' The clarification follows a Business Standard report that alleged significant layoffs, particularly among high-earning senior executives—a claim the company has unequivocally denied.
'We categorically deny the claim of a 25% workforce cost reduction and the other claims mentioned in the said news article,' the company stated in an official release.
The Business Standard article claimed that Dr Reddy was pushing out senior-level professionals earning over Rs 1 crore annually. It also speculated that the pharmaceutical giant was trimming its workforce to optimize costs and adjust to evolving business dynamics.
However, Dr Reddy’s has firmly denied all allegations, emphasizing that it does not comment on market speculation. The company underlined that the report is misleading and does not reflect the ground reality of its operations.
Contrary to the layoff rumors, Dr Reddy’s has been growing and expanding. The pharma major has:
- Ventured into nutraceuticals through a strategic joint venture with Nestlé
- Invested in digital therapeutics for tech-driven healthcare solutions
- Continued aggressive hiring to support portfolio expansion and global markets
This strategic momentum suggests that any notion of broad workforce cuts contradicts the company’s forward-moving operational blueprint.
Adding weight to its rebuttal, Dr Reddy’s Q3 FY25 financials show a rise in employee benefits expenses:
- ₹1,367 crore spent in Q3 FY25
- Up from Rs 1,276 crore in Q3 FY24
- ~7% year-on-year increase
These numbers contradict the idea of cost-cutting via layoffs, highlighting the company’s consistent investment in talent and growth.
While Dr Reddy’s shares have seen a 19% dip in 2025 so far, the stock showed signs of recovery with a 1.46% uptick, closing at Rs 1,110 per share on April 11. Analysts link this volatility more to market dynamics and global pharma trends than to internal HR restructuring.
Dr Reddy’s Laboratories is not shrinking—it’s evolving. With new product launches, diversified partnerships, and technology integration, the company appears more committed than ever to strengthening its workforce and global reach.
For stakeholders and job seekers alike, the official word is clear: No mass layoffs. No 25% workforce cost cuts. Just business evolution.
Also Read: PM Internship Scheme 2025 Deadline Extended to April 15
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