Swissmedic reaches deal to make significant staffing cuts

Swissmedic and its public services personnel unions have reached an agreement on a plan to cut staff and save money over the next two years, a move the regulator announced last year after a significant drop in revenue.

On 15 January, Swissmedic said that the agency's employee trade unions have agreed on cutting 45 full-time equivalents (FTE) and 6M Swiss francs ($7.5M) over the next two years. The agency said the measures are needed to stabilize its finances.

"After intense, constructive negotiations all parties are pleased with the agreement that has been reached," according to a statement from Swissmedic. "The redundancy scheme will take effect on 21 January 2026 and will allow the socially acceptable implementation of the headcount reduction from the end of January 2026.

"The scheme will enable the therapeutic products agency to implement the necessary staffing measures and quickly provide affected employees with the necessary support," according to the statement. "At the same time, the agreement will create clarity for all employees."

Swissmedic proposed the plan to cut costs in November 2025 after determining that its costs had risen faster than revenue. The agency said that in recent years it has taken on more regulatory tasks and invested in the digitalization of its systems and processes, which have led to higher costs. However, since public sector income has also decreased since 2024, the agency said it ended 2024 with a deficit of 23.4M Swiss francs ($29.33M) and its reserves were depleting faster than anticipated.

Approximately 80% of Swissmedic's budget comes from user fees, while 17% comes from government appropriations, according to the agency. However, the agency noted that the medical industry has not been growing in Switzerland at the same rate as in previous years, leading to operating expenditures that can't be covered in the medium term. Furthermore, it noted that federal appropriations no longer cover the cost of market surveillance and other statutory tasks.

"In the light of stricter EU medical device regulations and the breakdown of negotiations on the institutional framework agreement in May 2021, which resulted in the exclusion of Switzerland from the European system for medical device surveillance, Swissmedic has set up the new swissdamed database," said Swissmedic. "The Agency has operated this since 2024, thereby ensuring that Switzerland maintains a level of transparency and safety that is equivalent to that of the EU.

"However, the stricter regulation has also resulted in a higher headcount," the agency added. "The digital transformation and expansion in other areas, for example the supervision of medicinal products, have also contributed to this increase."

Swissmedic noted that a legislative amendment was submitted to the National Council Finance Committee in November to adjust user fees so that they meet inflationary increases and to introduce a flat fee for when manufacturers register a medical device. Furthermore, the agency said a supervisory levy is also being considered to help fund medical device surveillance costs.

Swissmedic press release

Swissmedic reaches deal to make significant staffing cuts

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