Pharmaceutical giant GlaxoSmithKline is planning to cut hundreds of jobs in the U.S. as part of a corporate restructuring, Bloomberg News reported Monday, citing people familiar with the situation.
The company is expected to announce the restructuring as soon as this week, Bloomberg reported.
In early November GSK, which employs about 5,000 people in the Triangle, announced a $1.4 billion cost-cutting strategy over three years amid slipping sales and global competition. London-based GSK did not at the time specify how many people would lose their jobs.
In a statement, GSK spokeswoman Mary Anne Rhyne said the company’s business units are still deciding what changes will made as a result of the restructuring.
“The aim of this program is to improve performance by taking unnecessary complexity out of our operations and establish a smaller, more focused, organization, operating at lower costs, that supports our future portfolio,” she said. “Each business unit is currently deciding how to respond to this challenge. When we do have proposals, we will first share those with our employees.”
GSK employs 4,500 at its North American headquarters in Research Triangle Park and about 500 at its manufacturing facility in Zebulon. The company makes and packages more than 20 medications here, including Advair and Flovent.
GSK’s global sales fell 3 percent to $9.4 billion in the third quarter and core operating profit also slipped. The decreases were driven by falling sales of the company's best-seller, asthma inhaler Advair, which GSK is trying to replace with new respiratory medications.
GSK is also in the process of spinning off its HIV business and plans to acquire a vaccine business from competitor Novartis as part of an ongoing restructuring. The Novartis deal will increase GSK's workforce by 14,000 new employees. The company employs about 99,000 people in 115 countries.