Dr Reddy's to cut workforce by 25%; high-salaried workers to be impacted: Report
By : Sandhya
According to reports, pharmaceutical behemoth Dr. Reddy's Laboratories is reducing labor-related expenses by around 25%, indicating one of the most drastic corporate reorganizations in the Indian pharmaceutical industry in recent memory. A Business Standard story claims that a number of senior executives, including numerous workers earning ₹1 crore or more, had been asked to step down.
Longtime workers have apparently been offered voluntary retirement as a result of the cost-cutting initiative, especially those in the Research & Development (R&D) division who are between the ages of 50 and 55. The income tax department sent Dr. Reddy's Laboratories Ltd. a show-cause notice last week, requesting more than ₹2,395 crore from the company in connection with the merger of Dr. Reddy's Holding Ltd (DRHL) with itself.
According to a regulatory filing, Dr. Reddy's Laboratories Ltd. got a show-cause notice from the Assistant Commissioner of Income Tax, Hyderabad, on April 4, 2025. The filing further stated that the company must explain why notice should not be sent for the assessment of income allegedly evaded taxes as a result of DRHL's merger into Dr. Reddy's Laboratories Ltd.