Amid Trump’s tariff war, one sector is bound to take a dent so bad it is already gearing up in a recoil motion. The pharmaceutical sector seems a little too paranoid. Indian pharma major Dr. Reddy’s Laboratories, based out of Hyderabad, Telangana, is reportedly axing 25% of its workforce.

The Indian multinational pharma company has also allegedly asked its staff with salaries above Rs 1 crore to quit. Employees in the age group of 50-55 employed in the R&D division have been asked to tender volunteer retirement. Per reports, besides the therapeutics division, the nutraceuticals division will undergo restructuring, resulting in the layoff of 300-400 staff. While the company witnessed a slump in its shares with a drop of 19%, Dr. Reddy reported a rise of nearly 7% in consolidated employee benefits expenses at Rs 1,367 crore for Q3 FY25 from Rs 1,276 in Q3 FY24.

Established in 1984 by Kallam Anji Reddy, the company is now helmed by CEO Erez Israeli, an artist, and Kallam Satish Reddy, the chairman of the firm. Reddy’s brother-in-law, G.V. Prasad, is the co-chairman and MD of Dr. Reddy’s Laboratories.

Reactions poured in on social media, with users concerned about the sector. One netizen wrote, “ And we thought that pharma was relatively safe; why do I fear that IT companies' mid-management will be the next layoffs target?” Another remarked, “Big news—is it because of some pressure of tariffs?” Yet another user jibed, “If this spreads (and it most likely will), this affluent consumption theme will go kaput. Tata Bye-bye, Khatam, to high-end real estate, retail, auto, and jewellery…”