Dr. Reddy's Laboratories Denies Workforce Reduction Rumors

Hyderabad-based pharmaceutical giant Dr. Reddy’s Laboratories has firmly rejected media reports claiming the company is planning to slash workforce costs by 25%. The company's response came after allegations surfaced about reducing manpower costs amid margin pressures.

Company's Official Statement

In an official exchange filing, Dr. Reddy’s labeled the information as "factually incorrect" and denied any such cost-cutting measures. "We categorically deny the claim of a 25% workforce cost reduction and the other claims mentioned in the said news article," the company stated.

Market Speculation and Regulatory Commitments

The company emphasized its policy not to comment on market speculation and reiterated its commitment to timely disclosures of any material developments, as required by regulatory norms.

Background and Financials

Earlier reports suggested the alleged cost reduction could impact 300 to 400 employees, potentially saving the company up to Rs 1,300 crore annually. This was viewed as a response to weak performances in recent ventures, including its partnership with Nestlé in nutraceuticals and its push into digital health.

In the third quarter of FY25, Dr. Reddy’s reported employee benefit expenses of Rs 1,367 crore, up from Rs 1,276 crore in the same quarter last year. The company also highlighted its hiring of over 6,200 people during FY24 and an investment of Rs 39.2 crore in training and development.