Pharma major, Dr Reddy’s may cut workforce by 25% as part of its cost cutting initiatives. This is as per a report by Business Standard that indicated that the Hyderabad-based company is undertaking significant downsizing.
Business Standard has quoted sources to indicate that this cut in workforce is part of an “internal directive to reduce manpower-related expenses.” As per the report, many employees belonging to the high-salaried bracket drawing annual package around Rs 1 crore have also been asked to resign. According to the report, staff in the 50-55 year age group working for the R&D division have been offered voluntary retirement.
Dr Reddy’s receives show casuse notice from IT department
Dr Reddy’s had recently received Rs 2,395-crore show cause notice from the Income Tax department. According to the exchange filing, Dr Reddy’s said “This is to inform that the Company has received a notice on April4 2025, from the Office of the Assistant Commissioner of Income Tax, circle 8(1), Hyderabad under sub section 1 of Section 148A of the Indian Income Tax Act, 1961 (‘Act), requiring to show cause as to why the returns for the Assessment Year 2020-21 (Financial Year 2019-2020) should not be reassessed under Section 148 of the Act.”
The company further stated that the “based on our assessment, there is no material impact on the financials, operations, or other activities of the Company at this stage.”
Reacting to media reports, Dr Reddy’s issued the following statement, ” We wish to clarify that the said news is factually incorrect. We categorically deny the claim of a 25% workforce cost reduction and the other claims mentioned in the said 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 which requires a 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,” the statement added.