Indian pharmaceutical major Dr. Reddy’s Laboratories has officially dismissed reports suggesting a substantial cut in workforce reduction, calling the allegations “factually incorrect.”
Responding to recent media speculation, the Hyderabad-based drug manufacturer clarified that it is not undertaking any initiative to slash employee costs by 25% or initiating widespread layoffs. These claims, according to the company, are unfounded and misleading.
“We wish to clarify that the said news is factually incorrect,” Dr. Reddy’s stated in a formal exchange filing. “We categorically deny the claim of a 25% cost reduction and the other assertions mentioned in the report.”
The response comes in the wake of reports claiming that high-salaried employees were being let go and that voluntary retirement schemes were being offered to staff in the 50–55 age group, particularly within the Research and Development (R&D) division. Some estimates had even suggested that such a move could impact 300 to 400 employees and save the company up to ₹1,300 crore annually.
However, Dr. Reddy’s has refuted any such developments and emphasised that the company does not respond to speculative reports. “We remain committed to making timely disclosures of any material developments, in line with regulatory norms,” the company reiterated.
Contrary to the speculation, available financial data indicates an increase in employee-related investment. In the third quarter of FY25, Dr. Reddy’s reported employee benefit expenses of ₹1,367 crore up from ₹1,276 crore in the same period the previous year. Additionally, the company hired over 6,200 people and allocated ₹39.2 crore toward training and development in FY24.
Other industry analysts had associated the speculated layoffs with pressures related to disappointing performance in such business ventures as the firm’s nutraceuticals alliance with Nestlé and entry into digital health. No announcement, however, has linked such ventures to any human resource policy.
By directly addressing the media reports, Dr Reddy’s has aimed to put to rest concerns over its employment policies at a time when job security and ethical corporate behaviour are under intense public scrutiny.
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