AM I NEXT? NO LOVE AT GLAXOSMITHKLINE (UPDATED)

 Am I Next? Layoffs at GSK - GlaxoSmithKline.

UPDATE: OCTOBER 18, 2018 — GSK SHEDS 100 EMPLOYEES IN MEMPHIS, TENNESSEE FACILITY

GSK Consumer Health-Global Manufacturing & Supply, a division of GlaxoSmithKline, will be permanently laying off approximately 100 jobs at their President’s Island facility in Memphis, Tennessee. The decision was driven by the end of a contract manufacturing agreement.

Original post…

Brentford, London-based pharmaceutical giant GlaxoSmithKline has announced that it would be implementing is previously-announced restructuring plan and laying off 650 employees in the United States; including 450 national field sales representatives and 100 “back office” employees in both their Philadelphia, Pennsylvania and Research Triangle Park, North Carolina offices.

In its July, 2018 Second Quarter earnings release, the company noted that “Focused improvements in operating performance have helped deliver increases in earnings and cash flow.” Chief Executive Emma Walmsley also announced “a new major restructuring program, which aims to 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.”

For those who are following the pharmaceutical industry in the trade press, the restructuring and layoffs should come as no surprise. Especially with the increased use of consumer-direct advertising through radio, television, and targeted social media outlets and the reduction in drug “detail” sales representatives calling on physicians. Drugs coming off-patent, the rise of generic bio-similar products, and the pricing pressures of large drug purchasing intermediaries are also weighing heavily on the industry.

Are you wondering, Am I Next?