GlaxoSmithKline is preparing to trim its work force by some 6,000 jobs, according to a raft of reports in the UK papers. There's no immediate word where the axe will fall. GlaxoSmithKline has about 100,000 workers around the globe and has lost ground in the marketplace as generic competition eats into its profits. But Glaxo did indicate that the cuts may slice deeper in its UK operations.
Glaxo employs a "disproportionately a higher number [of people] in the UK," a company spokesperson told the Times. "The UK represents 20 per cent of our 100,000-strong global workforce, but less than 10 per cent of sales. We don't announce big headcount reductions until we talk to the unions and work councils first. We have a good relationship with the unions and we've had ongoing consultations with them for the past two years."
Last year Glaxo said it would cut 2,000 jobs across its research, sales and manufacturing operations as it worked to trim $1.12 billion in annual costs by 2010. And third quarter profits suffered significant erosion as sales of Avandia dropped after it was linked to an increased risk of heart attack.
Faced with a weakening global economy and a poor track record in gaining new approvals, Big Pharma giants like Pfizer and AstraZeneca have been turning to restructuring operations to bolster their bottom lines.
- read the BBC report
- check out the story from The Times