Drug maker GlaxoSmithKline (NYSE:GSK), a British pharmaceutical company headquartered in Brentford, London, has revealed it will be slashing many jobs.
The company has disclosed the layoffs which are a part of an efficiency plan that the company had previously announced.
The job cuts will effect 100 employees of the commercial operation in Research Triangle Park, North Carolina. They will also impact 450 field positions – primarily in sales – scattered across the country.
A GlaxoSmithKline (NYSE:GSK) spokeswoman has said that the company still has 2,000 employees in RTP and the 900-employee manufacturing operation in Zebulon was unaffected by the cuts.
“The bottom line is, we’re still completely committed to RTP,” stated spokeswoman Mary Ryne. “It’s still our largest commercial site. None of that changes.”
The field layoffs are expected to take place in the fourth quarter according to the notice.
“The downsizing is intended to contribute a major cost savings and improve the operational performance within certain sectors of our Commercial and Commercial support operations,” the notice read.
It was in July when the company announced earnings that it had said that it would “significantly improve the competitiveness and efficiency of the Group’s cost base with savings delivered primarily through supply chain optimization and reductions in administrative costs.”
GSK has estimated that the restructuring would cost over $2 billion through 2021, and to deliver more than $500 million in annual savings over the same time period. The company will use money saved for research and development.
For the second quarter,(NYSE:GSK) reported in July earnings of 76 cents per American depositary share. This was higher than the 71 cents that was expected by analysts. Revenues were also higher than expected.
CEO Emma Walmsley stated, “GSK has delivered encouraging results across the company this quarter with CER sales growth in each of our three global businesses, an improved Group operating margin, Adjusted EPS growth of 10% (CER) and stronger free cash flow.”
“Sales growth reflected strong commercial execution of the three new launches we have prioritized: Trelegy Ellipta which provides three medicines in a single inhaler to treat COPD; Juluca, the first 2-drug regimen, once-daily, single pill for HIV, helping to reduce the amount of medicines needed, and Shingrix, which represents a new standard for the prevention of shingles. We are increasing our expectations for sales of Shingrix in 2018 to £600-650 million.”
“Focused improvements in operating performance have helped deliver increases in earnings and cash flow. Free cash flow for the year to date was £0.8 billion and we are announcing a dividend of 19p for the quarter. We continue to expect to pay a dividend of 80p for 2018.”