Takeda, the largest Japanese drug manufacturer, is facing a significant challenge to improve profitability and refresh its product pipeline while also catching up in digitalization efforts. The company has experienced cost pressures that have led to potential major job cuts, with its European headquarters in Opfikon experiencing a reduction in office space. Takeda is not widely known in Switzerland as a pharmaceutical company, but it has a significant presence in the country with almost 2,000 employees.
Analysts have pointed out the need for Takeda to implement a global cost-cutting program to improve profitability. However, the high level of debt from the acquisition of competitor Shire has further exacerbated the financial challenges the company is facing. The acquisition of Shire was one of the most expensive in pharmaceutical industry history and has not yielded the expected returns. Takeda is struggling with the loss of patent protection for key products like Vyvanse, leading to a decline in sales.
The company’s growth prospects are weak, and it lacks new high-sales products in the pipeline. In addition to financial challenges, Takeda also lags behind its competitors in digitalizing its business processes. While the company has launched digitalization initiatives, these may lead to job redundancies and strain on profit margins in the short term. Previous job cuts at Takeda have affected employees in Switzerland, and current cost pressures may lead to further reductions in staff.
Takeda’s financial outlook remains challenging due to stagnant sales and weak growth projections. However, there is hope that by implementing cost-cutting measures and refreshing its product pipeline while catching up on digitalization efforts, Takeda can overcome these challenges and emerge stronger than ever before.
Overall, while Takeda faces tough times ahead with potential job cuts and cost-saving measures impacting employees across Europe and beyond
