Fears for 4,000 jobs as GlaxoSmithKline seeks more savings

Drugs giant GlaxoSmithKline added to job woes in the sector today as it upped cost saving targets amid fears it plans to axe 4,000 roles.

The news comes a week after AstraZeneca revealed it was cutting another 8,000 jobs worldwide, on top of 12,600 job losses already made.



Glaxo is aiming to slash annual costs by a further £500 million 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.



Glaxo has its headquarters in Brentford, Middlesex, and research bases at Stevenage and Ware in Hertfordshire and Harlow in Essex.



Its UK manufacturing operations include sites at Ulverston in Cumbria, Montrose, Angus, and Irvine in Ayrshire.









Glaxo said job losses in the UK would be in the "hundreds not thousands".

Much of the impact of the new cost savings will be in its research and development division, particularly neuroscience dealing with depression and pain.



The group has been cutting jobs over the past year, having ramped up cost savings by £1 billion last February.



But Glaxo has declined to confirm how many of its 99,000 staff have been affected so far.



It delivered £1 billion of annual cost savings in 2009 and has another £2.2 billion to go by 2012.



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 per cent of these new savings will be directed to the bottom line to enhance profitability."



The news came as Glaxo announced a 12 per cent rise in underlying pre-tax profits to £8.7 billion for 2009, up from £7.8 billion 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 per cent to £28.4 billion.







Recent reports have suggested Glaxo plans to cut 4,000 jobs globally under this latest cost saving exercise.

But the firm said today it was also expanding in growth areas, launching a new research and development unit to look into rare diseases.



Pharmaceutical firms have been overhauling their R&D capabilities into more profitable areas as they suffer amid competition from cheap generic rivals.



Glaxo said it faced a £1.4 billion hit to sales last year due to generic competition, although this was offset partly by the swine flu boost.



The group made sales of £883 million from its H1N1 flu pandemic vaccine in 2009 - largely in the fourth quarter.



It believes sales for its swine flu vaccine will remain at similar levels for 2010, despite governments cutting back orders due to the easing severity of the pandemic - said to have been no worse than the usual seasonal flu.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
News
ebooksNow available in paperback
Life and Style
tech
News
The 67P/CG comet as seen from the Philae lander
scienceThe most important scientific breakthroughs of 2014
Arts and Entertainment
Ian McKellen as Gandalf in The Hobbit: The Battle Of The Five Armies
film
Arts and Entertainment
Sarah Koenig, creator of popular podcast Serial, which is to be broadcast by the BBC
tvReview: The secret to the programme's success is that it allows its audience to play detective
News
Ruby Wax has previously written about her mental health problems in her book Sane New World
people
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Marketing Services Manager - (communications, testing, DM)

£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...

Guru Careers: Finance Account Manager

£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...

Ashdown Group: Java Developer - Hertfordshire - £47,000 + bonus + benefits

£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...

Ashdown Group: Direct Marketing Manager - B2C, Financial Services - Slough

£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas