Novartis Plans 2,000 Jobs Cuts Despite Profit Rise

By Frank Jordans

GENEVA (AP) -- Swiss pharmaceutical giant Novartis AG said Tuesday it will cut 2,000 jobs as drug prices come under pressure from governments seeking to reduce health care budgets.

Novartis, which posted a 7 percent increased third-quarter net profit of $2.49 billion Tuesday, said 1,100 jobs will disappear in Switzerland, with a further 900 to be cut in the United States. Some 700 new positions will be created in low-cost countries such as India and China, resulting in a net loss of 1,300 jobs.