Takeda’s Financial Struggles Lead to Job Cuts and Uncertain Future in Switzerland
Takeda, a Japanese drug manufacturer, is facing significant cost pressures that are leading to major job cuts at its European headquarters in Opfikon. Despite being little known in Switzerland, Takeda employs nearly 2,000 people in the country, making it one of the important employers in the local pharmaceutical industry, behind Roche, Novartis, and Lonza.
The company is under immense financial strain due to several factors such as deteriorated profitability, high levels of debt from acquiring competitor Shire, and the loss of patent protection for one of its key revenue drivers, the drug Vyvanse. Takeda is also struggling with refreshing its product pipeline and digitalizing its business processes. The company lacks new high-sales products in the short to medium term and lags behind competitors in digital transformation.
As a result of these challenges, Takeda’s future growth prospects seem weak with analysts predicting little to no growth over the next four years. Additionally, margins are also under pressure due to digitalization initiatives and cost-cutting measures that could impact thousands of jobs at the company’s headquarters in Opfikon and production plant in Neuchâtel.
Takeda must navigate through this difficult time by finding ways to improve profitability while refreshing its product pipeline and embracing digital transformation to secure its position in the market.
