GlaxoSmithKline to cut jobs amid restructuring
1 min read
GlaxoSmithKline, the world’s second-largest drugs manufacturer, is to cut 350 jobs – about 2% of its 17,000 R&D staff – as part of a restructuring plan aimed at cutting costs and boosting productivity.
According to a report from Associated Press, Glaxo, like other drug makers, is facing declining revenues as competition from generic producers increases. Additionally, the company is having to face up to the reality of a diminishing pipeline of future blockbuster drugs, amid setbacks with some of its potential portfolio.
“We continue to reshape our R&D operations to take advantage of new scientific opportunities and improve GSK’s productivity,” a Glaxo statement said. “Regrettably, some job reductions are necessary and we will do everything we can to support those employees who are affected.”
The news follows the disclosure earlier this week that Glaxo plans to restructure its R&D operations into smaller units focusing on specific diseases, with rewards based on performance.
Glaxo let it be known in October that it planned to cut jobs and probably close some of its sites as part of a £1.5 billion programme to cut costs, increase R&D and streamline production.
The programme is also expected to deliver annual pre-tax cost savings of up to £700 million by 2010.
