GlaxoSmithKline warns of job cuts as it sets £1.5bn cost-cutting target

Pharmaceutical giant GlaxoSmithKline has announced major job cuts as part of a £1.5bn cost-cutting plan, following poor sales results for its diabetes treatment Avandia.

GSK said it would slash jobs as part of a drive to save up to £700m in annual costs within three years, but would not indicate where or how many.

The firm employs more than 100,000 people globally, including 22,000 in the UK at sites in Ware, Temple Hill in Dartford, Maidenhead and Worthing.

GSK’s move follows an announcement earlier in the year by pharmaceutical rival Astra Zeneca that it would axe 7,600 jobs worldwide as part of a cost-cutting plan.

Sales of Avandia fell by 38% in the quarter to £225m as GSK reported a 7% fall in third-quarter profits

Jean-Pierre Garnier, chief executive at GSK, said: “GSK is also constantly seeking ways to adapt its operations and its cost base to remain competitive.

“We are very conscious that these initiatives will impact our staff in certain areas of our business and we regret that job reductions will be a necessary part of this programme. We will do everything we can to support those employees who are affected.”

Comments are closed.