Skyepharma PLC (SKYE) Announces Start of Consultation Process on Potential Restructuring of its French Operations; Could Potentially Cut 129 Jobs
LONDON, UK, 5 March 2009 -- SkyePharma PLC ("SkyePharma") (LSE: SKP)
today announces that the management of its French subsidiary,
SkyePharma Production SAS, Lyon, has entered into a consultation
process with the Company's Works Council about potentially reducing its
workforce of 129 employees by approximately one-third. The proposed
reduction arises due to the long-standing under-utilisation of the
French manufacturing facility. The proposed reduction would improve the
competitiveness of the Lyon factory and if implemented as currently
envisaged, is expected to save approximately EUR1.8m (GBP1.6m) of
operating costs each year. The proposals are not expected to affect
current manufacturing arrangements nor relationships with the Group's
manufacturing partners.
Dr. Ken Cunningham, CEO of SkyePharma said, "We regret the need to
propose this potential reduction in the workforce at our French
manufacturing operations and, following consultation, intend to
implement an appropriate social plan to assist any employees affected.
However, changes are essential to ensure that we have the correct
staffing for the forecast levels of demand. We will continue to
constrain cash utilisation to ensure that we meet our goal of
retaining cash resources that are sufficient to enable SkyePharma to
reach its target of sustainable profitability."
About SkyePharma PLC
Using its proprietary drug delivery technologies, SkyePharma develops
new formulations of existing products to provide a clinical advantage
and life-cycle extension. The Company has twelve approved products in
the areas of oral, inhalation and topical delivery. The Group's
products are marketed throughout the world by leading pharmaceutical
companies. For more information, visit www.skyepharma.com.