Galenica to Cease Production at Bichsel Subsidiary, Cutting Up to 170 Jobs

A seismic shift hits the Bernese Oberland today as pharmaceutical titan Galenica announces it is pulling the plug on production at its Bichsel subsidiary. In a move that underscores the brutal reality of global competitiveness, the Swiss group declared it will shutter the manufacturing arm by the end of this year. This decision puts up to 170 jobs on the chopping block, a significant blow to the local industrial landscape.

The writing has been on the wall. Galenica, which acquired the Interlaken-based firm in 2019, admits that the subsidiary has been grappling with a severe lack of competitiveness. Despite the site's deep roots—founded in 1948—sentiment has yielded to solvency. The company bluntly stated that "no scenario can guarantee the long-term future of production," effectively sealing the fate of the facility. While the closure of the production lines is immediate, the job cuts will bleed out over a longer timeline, finalizing by the end of 2026. This is not a pause; it is a permanent stop.

The numbers behind this decision are stark and unforgiving. Galenica is bracing for a staggering CHF 35-40 million ($45-51 million) in restructuring costs, the bulk of which will hit the books in the first half of this year alone. This includes a massive CHF 17-19 million in value adjustments on inventories and tangible fixed assets. The company did not arrive at this conclusion lightly; they examined major investments and even the construction of a new building, but the math simply did not add up.

In a candid admission, the group noted that "various measures aimed at improving results have not had sufficient effect in recent years." The facility's condition is apparently so compromised that Galenica concluded "a sale is not possible," leaving closure as the only viable financial exit. However, this short-term pain is calculated for long-term gain. By shedding this dead weight, Galenica projects its operating profit (EBIT) will surge by CHF 3 million annually starting in 2027. It is a classic, albeit ruthless, corporate maneuver to trim fat and boost margins.

For the employees at Bichsel, the announcement triggers a period of acute uncertainty. Up to 170 livelihoods hang in the balance. A consultation procedure is scheduled for mid-March, a critical window where the fate of these workers will be debated. Galenica asserts it is examining "options for maintaining employment within the Group," but the sheer scale of the cutbacks suggests that internal absorption will be limited.

If redundancies prove unavoidable—as they almost certainly will—a social plan is promised, including financial support and professional reorientation. The timeline extends the anxiety: while production stops this year, the job losses will continue to roll out through 2026. This prolonged exit strategy offers some time for transition but does little to soften the blow of losing a major regional employer. The company has pledged that Bichsel will continue to supply customers during this transitional phase, a small comfort to the workforce tasked with winding down their own jobs.