Small Molecules Asset Transformation – Phase II

The first phase of the SMAT reorganisation began in 2016 and was occasioned by a number of challenges facing the company. These relate to the altered operating conditions for established production, the product portfolio for the launch and resupply of future products with novel active substances and a faster-moving development environment. In the second phase, which was implemented this year, the organisational structure is being adapted and the organisation downsized further. The AVR cannot fundamentally oppose the changes and adjustments necessitated by the volatile and growing pharmaceutical market. Instead, it seeks to find the best possible solutions for the employees. Moreover, the AVR wants to support Roche’s long-term, sustainable growth.

What does the AVR do when there is a reorganisation?

First of all, the AVR seeks to gain an overview in order to understand the strategy behind the reorganisation. Numerous meetings are held to gather background information at first hand, discuss the arguments presented by the unit’s management in detail, and prepare strategic questions and alternative proposals. Line managers have to be consulted to clarify issues so that information is obtained at first hand. Since in the case of SMAT the change process is also embedded globally, more complex interrelationships are involved. Here it is important to be able to picture the global strategy. Thus the AVR sought a personal dialogue with Mr Pierre-Alain Ruffieux, Head PT Global, and Mr Sven Hauptmann, Head Small Molecules, to obtain an overview of the PT Strategy 2020. The AVR greatly appreciated the fact that Messrs Ruffieux and Hauptmann made time for this.

Thanks to this intensive preparatory work, the AVR was finally able to talk to the Corporate Executive Committee on an equal footing and adopt a strategic position in reducing the planned number of job cuts. The AVR would like to take this opportunity to thank everyone concerned – unit heads, line managers and the Executive Committee – for the consistently open and frank discussions.

Best possible solutions for the employees

For the first SMAT phase, the AVR succeeded in reducing job losses by 30%. Thanks to good cooperation with HR and the Reorientation Centre (NOZ), solutions are only having to be found for about ten people.

In the second SMAT phase, which was implemented this year, so far job losses have been reduced by about 25% compared with the number originally announced. The AVR is working closely together with the HR organisations to enhance the employability of the people concerned.

To reduce the number of employees affected further, the AVR has also been focusing on facilitating substitution retirements. This can prove to be a lengthy process: finding a suitable position for such an exchange calls for close scrutiny. The AVR thus asks the employees and line managers involved to bear with it.

A redundancy scheme has been set up for the SMAT reorganisation. In doing so, the AVR has managed to negotiate additional options for older employees, who will be taking early retirement on the strength of the redundancy scheme. The AVR is working to ensure that all employees affected by SMAT will be able to benefit from the scheme’s advantages.