Dr Reddy’s layoffs: Pharma major to cut workforce cost by 25%? Here’s what the drugmaker says

Pharmaceutical layoffs planned? No, says Dr Reddy's Laboratories, as the drugmaker categorically denied media reports that has undertaken workforce reduction to cut costs by around 25 per cent. Calling the reports “factually incorrect”, Dr Reddy's Laboratories denied layoffs of employees, including senior executives, as reported by Business Standard. 

The paper had reported that Dr Reddy's Laboratories, is looking to soon trim workforce costs by nearly 25 per cent. It reported that executives who earn more than ₹1 crore annually, have been asked to resign; while employees aged 50-55 years, in the company's research and development (R&D) division have been offered a voluntary retirement; and several high-salaried individuals across various departments who also have been asked to resign.

Dr Reddy's Share Price Update — April 15

Amid the news, Dr Reddy's Labs shares are in focus today, on April 15. At 11.13 am, the stock was up 3 per cent or 33.30 points to ₹1,142.80 from open price. The stock opened at ₹1,140.90, hitting a high of ₹1,151.40 and low of ₹1,129.00, during the session, so far.

What Did Dr Reddy's Say? Employee Layoffs Denied

“This is in reference to a news item published in Business Standard on April 13, 2025, with the heading “DRL trims workforce costs by 25 per cent amid Revlimid-linked margin strain”. We wish to clarify that the news is factually incorrect. We categorically deny the claim of a 25 per cent workforce cost reduction and the other claims mentioned in the news article.

In this regard, please note that the company does not comment on market speculations, and there is currently no such event or information that requires disclosure under Regulation 30 of the SEBI Listing Regulations.

In compliance with Regulation 30 of the SEBI Listing Regulations, the company makes prompt disclosure of any event or information as and when any event or information is considered material or warrants such disclosure under the said Regulation," said Dr Reddy in a regulatory filing to the stock exchanges.

Dr Reddy's Laboratories Q3 Results

Dr Reddy's Laboratories reported a two per cent year-on-year (YoY) increase in consolidated profit after tax (PAT) to ₹1,413.3 crore for the quarter ended December 2024 (Q3FY25), compared to ₹1,378.9 crore in the year-ago period.

Revenue from operations came in at ₹8,358.6 crore, a 16 per cent YoY jump compared to ₹7,214.8 crore posted in the December 2023 quarter. The growth was driven by revenues from the acquired Nicotine Replacement Therapy(NRT) portfolio, revenues from India, and revenues from Emerging Markets.

The global generics segment revenue saw a 17 per cent increase in Q3, while the pharmaceutical services and active ingredients (API) segment reported a five per cent growth in revenue. Shares of Dr Reddy's Labs last settled 1.28 per cent higher at ₹1,109.15 apiece on the BSE. The drugmaker's shares have cracked 19 per cent year-to-date (YTD) and nearly four per cent in one month.