Following a year-long strategic review, Viatris announced on February 26, 2026, a plan to reduce its global workforce by approximately 10% over the next three years. This restructuring effort, affecting roughly 3,000 positions across commercial, R&D, and manufacturing units, aims to generate annual savings of $600 million to $700 million upon completion. The company expects to incur up to $850 million in restructuring charges related to severance, vendor consolidation, and network modernization.
The announcement comes as Viatris navigates significant operational hurdles in India. The company recently disclosed a fire at its Nashik facility earlier this month, which has forced a two-month suspension of production. This follows a challenging period for its Indore plant, where an FDA import alert in late 2024 resulted in a $370 million revenue loss last year. While remediation at the Indore site is largely complete, the fire at Nashik represents a new supply chain disruption for the drugmaker.
Despite a 3% decline in global sales to $14.3 billion in 2025, Viatris remains optimistic about its 2026 outlook, forecasting revenues between $14.45 billion and $14.95 billion. This projected recovery is predicated on a partial supply rebound from its Indian manufacturing hubs and the long-term financial benefits of its enterprise-wide efficiency initiatives.