'Factually incorrect': Dr Reddy's denies report on 25 pc workforce cost cuts, laying off highly-paid staff (Lead)

New Delhi, April 14 (IANS) Pharmaceutical major Dr Reddy's Laboratories on Monday denied media reports that claimed that the company is planning a 25 per cent reduction in workforce costs and laying off high-earning employees.

The company said the information is "factually incorrect" and categorically dismissed the claims made in the report.

"We wish to clarify that the said news is factually incorrect. We categorically deny the claim of a 25 per cent workforce cost reduction and the other claims mentioned in the said news article," Dr Reddy’s said in a stock exchange filing.

The company also added that it does not comment on market speculation.

“In this regard, please note that the Company does not comment on market speculations and there is currently no such event or information which requires a disclosure under Regulation 30 of the SEBI Listing Regulations,” the firm added in its filing.

Earlier, a media report claimed that Dr Reddy's had initiated a major cost-cutting drive, asking several senior executives -- especially those earning over Rs 1 crore annually -- to resign.

The report also alleged that the company had offered voluntary retirement to employees in the 50–55 age group, mainly from its research and development division.

It further suggested that around 300–400 employees might be affected by the move.

According to the report, the move was being seen as part of the company’s broader efforts to improve operational efficiency, particularly in light of its recent ventures into new areas like nutraceuticals (through a joint venture with Nestle) and digital therapeutics.

Dr Reddy’s, however, maintains that no such cost-cutting measures targeting employee layoffs have been initiated.

The company emphasised that it has been hiring actively in recent years to support its expansion into new businesses.

In fact, Dr Reddy’s reported consolidated employee benefit expenses of Rs 1,367 crore in Q3 FY25 -- a 7 percent rise from Rs 1,276 crore in the same period of FY24.

The company had also hired over 6,200 people in FY24 and invested nearly Rs 39 crore in employee training and development.

--IANS

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