Dr. Reddy's reduces Staffing Costs by 25%, Let Go Employees

According to media reports, pharmaceutical giant Dr. Reddy's Laboratories has started a comprehensive downsizing programme with the goal of reducing its personnel costs by over 25%. According to the report, numerous senior officials, including numerous workers who make more than INR 1 crore a year, have been asked to step down. According to a media report, voluntary retirement has been extended to employees in the company's research and development (R&D) division who are between the ages of 50 and 55. According to the article, a number of high-paid employees from different departments have already been asked to step down.

Move Aligned with Company’s Aim of Improving Operational Efficiencies

This occurs when Dr. Reddy's Laboratories keeps making strategic decisions to increase operational efficiencies. The pharmaceutical company recently launched a number of new medications and ventured into digital treatments and nutraceuticals (via a joint venture with Nestlé). The business has made significant hiring in recent years to support these new endeavours. The corporation may have to reduce the number of its staff if these new endeavours do not perform as expected. The nutraceuticals arm may experience some downsizing, while the therapeutics branch may be completely shut down. 300–400 individuals might be laid off as a result of this. Interestingly, in Q3 of FY25, the company recorded consolidated employee benefits expenses of INR 1,367 crore. Compared to the INR 1,276 crore in employee benefits expenses recorded in Q3 of FY24, this represented an almost 7% increase.

Layoffs have Become a Common Scenario in 2025

With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025. Companies are still cutting employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023. Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing. Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports. According to reports, AI-led restructuring and performance-based terminations are part of the corporations' goals to increase the effectiveness of their personnel.

In its Platforms and Devices division, which manages important products including Android, Pixel devices, and the Chrome browser, Google, a subsidiary of Alphabet, laid off hundreds of workers. The action comes after the corporation launched a voluntary exit programme in January, indicating that it is working towards a more streamlined and flexible organisational structure. According to reports, Microsoft is also preparing for another round of layoffs that may begin as early as May 2025. Talks are apparently underway to boost the proportion of engineers to non-technical personnel and decrease middle-management positions.

The tsunami of IT layoffs in 2025 is not limited to industry titans; many other businesses in many sectors are also reducing their workforces significantly. The parent company of WordPress, Automattic, announced a 16% layoff that will impact about 270 workers. Likewise, Canva fired 10–12 technical writers in response to the company's push for AI-generated content.