Hundreds Of Glaxo SK Jobs To Be Axed
4:48pm UK, Thursday February 04, 2010
Rob Cole, Sky News Online
The boss of drugs giant GlaxoSmithKline has confirmed the company is planning to cut hundreds of jobs in the UK but played down reports that up 4,000 positions could go.
GlaxoSmithKline says it is cutting research into pain and depression
There are fears the firm is set to announce that thousands of jobs will be axed globally but Glaxo said the UK jobs toll would not be in the four-figure region.
The company is aiming to slash annual costs by a further £500m within two years but said it would "try to preserve jobs".
"As before, we will not be providing targets for job reductions and we will announce restructuring outcomes once employees, relevant works councils and trade unions have been consulted," it said.
Much of the impact of the new cost savings will be in its research and development division.
The company said it was halting research into depression and pain.
The group has been cutting jobs over the past year, ratcheting up cost savings by £1bn last February.
But it has not revealed how many of its 99,000 staff have been affected.
It delivered £1bn of annual cost savings in 2009 and has another £2.2bn to go by 2012.
Flu vaccine bolstered Glaxo's profits
Most of the new savings outlined today will be made in 2011.
Glaxo said: "A significant proportion of these new cost savings will be generated through reduction of infrastructure.
"Approximately 70% of these new savings will be directed to the bottom line to enhance profitability."
The news came as Glaxo announced a 12% rise in underlying pre-tax profits to £8.7bn for 2009, up from £7.8bn in 2008.
Global demand for swine flu treatment and vaccines helped it return to annual sales growth for the first time since 2007, with turnover ahead by 16% to £28.4bn.
The jobs threat comes a week after AstraZeneca revealed it was cutting another 8,000 jobs worldwide, on top of 12,600 job losses already made.
4:48pm UK, Thursday February 04, 2010
Rob Cole, Sky News Online
The boss of drugs giant GlaxoSmithKline has confirmed the company is planning to cut hundreds of jobs in the UK but played down reports that up 4,000 positions could go.
GlaxoSmithKline says it is cutting research into pain and depression
There are fears the firm is set to announce that thousands of jobs will be axed globally but Glaxo said the UK jobs toll would not be in the four-figure region.
The company is aiming to slash annual costs by a further £500m within two years but said it would "try to preserve jobs".
"As before, we will not be providing targets for job reductions and we will announce restructuring outcomes once employees, relevant works councils and trade unions have been consulted," it said.
Much of the impact of the new cost savings will be in its research and development division.
The company said it was halting research into depression and pain.
The group has been cutting jobs over the past year, ratcheting up cost savings by £1bn last February.
But it has not revealed how many of its 99,000 staff have been affected.
It delivered £1bn of annual cost savings in 2009 and has another £2.2bn to go by 2012.
Flu vaccine bolstered Glaxo's profits
Most of the new savings outlined today will be made in 2011.
Glaxo said: "A significant proportion of these new cost savings will be generated through reduction of infrastructure.
"Approximately 70% of these new savings will be directed to the bottom line to enhance profitability."
The news came as Glaxo announced a 12% rise in underlying pre-tax profits to £8.7bn for 2009, up from £7.8bn in 2008.
Global demand for swine flu treatment and vaccines helped it return to annual sales growth for the first time since 2007, with turnover ahead by 16% to £28.4bn.
The jobs threat comes a week after AstraZeneca revealed it was cutting another 8,000 jobs worldwide, on top of 12,600 job losses already made.
