Drug maker GlaxoSmithKline, which has cut hundreds of Triangle jobs in recent years, will announce another round of layoffs Thursday when it reports quarterly earnings, a British newspaper reports.
The London-based corporation employs about 5,000 people in this region, mostly at its North American headquarters in Research Triangle Park. GSK has been slashing expenses under CEO Andrew Witty to offset slowing sales of blockbuster drugs amid increasing competition from cheaper, generic medicines.
Now the company is preparing to announce plans to eliminate 4,000 jobs, nearly half at its research centers, the Sunday Times of London reports. GSK "will scale down activities at research facilities in Britain, across Europe and in the United States as it builds its activities in emerging markets," the newspaper reports.
GSK's ongoing layoffs could hurt the Triangle's economy, as more highly paid researchers and scientists are thrown out of work. The company employs about 100,000 worldwide.
Company spokeswoman Mary Anne Rhyne declined to comment on the Sunday Times report, citing the "quiet period" prior to announcing financial results on Thursday. "We have said that we are continuously seeking to simplify our business and ensure that we are positioned to meet the current and evolving needs of the marketplace," she added.
GSK announced a first cost-cutting initiative in Oct. 2007 that eliminated thousands of jobs worldwide, and then expanded that effort in Feb. 2009.
Other large drug makers have taken similar steps. Last week rival AstraZeneca announced plans to slash another 8,000 workers.
Read the full Sunday Times report here.
Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or
Comments
GSK Announcement
Mon, 02/01/2010 - 16:24 — FUGAZZIThis is going to free up even more time for Americans to pursue the arts.I would imagine that a lot of great painting,writing,and poetry will emerge from this period.I'm fortunate enough to receive a family trust from my grandfather,of the Reynolds family.I just wonder what other people do for finances?
Why exactly should we vote for Republicans?
Mon, 02/01/2010 - 14:30 — avg_joeGeorge W. Bush left this country saddled with a staggering $8 trillion budget deficit, two open-ended wars, an economy in free-fall, and a middle class struggling for its very survival.
He very well might go down in history as the worst president this country has ever seen.
From all indications, the bumbling John McCain and his intellectually-challenged sidekick Sarah Palin were prepared to carry on Bush's legacy of failure if the American public was dumb enough to elect them to office.
I'm far from being in love with the Democratic Party these days, but after George W. Bush, I'm not sure Republicans are qualified to run a McDonald's drive-thru, let alone our federal government.
Ha! You know its bad when
Mon, 02/01/2010 - 13:17 — PhantomLordHa!
You know its bad when the Obamabots defense of Obama is "Oh ya, if McCain..."
McCain and Palin - It could have been worse :)
Mon, 02/01/2010 - 13:10 — avg_joeWhile the majority of Americans are rightly upset about the economy and jobs situation, I don't think anyone but right-wingers think things would have been better if we elected that crazy old man McCain and his dim-witted sidekick Palin.
Was that really the best the Republican party had to offer in 2008? At least, on the bright side, Republicans don't have to worry about McCain running again. As for Palin, she would be the Democrats' dream-come-true if she shows up on another presidential ticket, but I don't see Republicans making that mistake twice.
As for the economy, we need to come to the realization that unconditional free trade with the developing world (e.g. China and India) amounts to slow economic suicide for developed countries like the United States. We also need to get control of our borders (esp. illegal immigration), and end programs like H-1B and L-1 foreign worker visas that have been killing middle class jobs and lowering middle class salaries for decades.
I don't care if its the Republicans, Democrats, or some third party ... the first ones to step up to the plate on these critical issues will have my vote.
Hows that Hope & Change and
Mon, 02/01/2010 - 12:07 — PhantomLordHows that Hope & Change and "Jobs" Governor working out for you?