Am I Next? Layoffs at GSK - GlaxoSmithKline.


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?


 Am I Next? French Drug Manufacturer Sanofi to layoff 400 people.

Sanofi, based in France and one of the world largest multinational pharmaceutical companies in the world, has announced a new round of layoffs in its continuing restructuring program to meet competitive pressures.

Published reports indicate that the new round of workforce adjustments will result in at least 400 layoffs in their United States sales force, mostly involved with Sanofi’s diabetes and cardiovascular products.

It is no secret that drug-makers are being subject to expiring protections on lucrative proprietary drugs, bio-similar compounds, and competitive purchasing pressures from distributors who are kicking back incentives to large institutions. In addition, most drug manufacturers are reducing their direct-to-physician contracts in favor of advertising using both mainstream media and internet channels aimed at a targeted audience.

Of course, the company was quick to employ corporate-speak, using spokesperson  Ashleigh Koss to explain that the reduction in force will "enable us to continue to adapt to the ever-changing market, and allow us to focus on our recent launches while setting us up for success in the future.” She could have easily added, “move along, nothing new to see here folks.”

Are you asking yourself, Am I Next?


 Am I Next? Merck & Company layoffs

It appears that Merck & Company will be following other pharmaceutical companies such as Eli Lilly (3,500 layoffs) and Teva (7,000layoffs)  in reorganizing and realigning their core functionality and personnel. Merck will reduce their labor force by approximately 1,800 workers, primarily in sales and who serve as drug detail representatives to primary-care doctors, endocrinologists and hospitals. 

Gone are the days of exclusive-to-physician marketing and the past practice of attempting to influence individual prescribers with samples and brand reminders such as golf-balls and other tchotchkes. Or allowing the high-prescribers to fulfill their CEU (Continuing Education Credits) at high-end resorts. Not to mention paying “honoraria” for sponsored speaking events. Now, with the advent of the internet and interactive media, we can see more targeted marketing of so-called associative ads. Drugs are marketed directly to consumers with the benefit of the constant repetition of the horrendous potential side-effects dulling the perception of prescription dangers. It is not uncommon for patients to research their conditions and symptoms on the internet and request (or demand) certain therapies or branded drugs from their attending physicians.