GSK to cut hundreds of jobs to save costs
Britain’s top drugmaker announced at third-quarter results on October 22 that the restructuring scheme would save £1bn (€800bn) in annual costs over three years, but it has yet to tell employees where the axe will fall.
A spokesperson for GSK Ireland, which employs 1,500 people, said there are no specific plans for job cuts in Ireland at this stage.
Staff in the US, where GSK has been struggling with falling sales of respiratory drugs, will be told of the changes on Wednesday by the company’s head of north American pharmaceuticals Deirdre Connelly, the sources said.
A spokesman declined to go into details but said the aim of the restructuring programme was to improve performance by reducing complexity and establishing a smaller, more focused and lower-cost organisation.
US insurers, who themselves are under pressure to keep premiums in check, are pushing back particularly hard on prices for medicines in areas like diabetes and respiratory diseases where there are multiple options for doctors and patients.
The revamped GSK operation in the US is designed to defend its margins in this tough environment. The changes will also take into account the movement of some pharmaceuticals staff as a result of an asset swap deal with Switzerland’s Novartis, which is taking over GSK’s oncology business.
Reuters with additional reporting from Irish Examiner reporters
CONNECT WITH US TODAY
Be the first to know the latest news and updates
