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GSK sees further US job losses following Novartis deal

Published on 17/04/15 at 03:04pm
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Hundreds more jobs are at risk within GlaxoSmithKline as the fallout from the company’s asset-swapping deal with Novartis continues.

Staff in the UK firm’s consumer health division in Pittsburgh, Pennsylvania, have been told their jobs are at risk – after the firm decided to close the office where 275 members of the workforce are based.

A GSK spokesperson told the website TribLive that GSK and Novartis both have offices in nearby Parsippany, New Jersey, and following the companies’ asset-swapping deal to combine their consumer health divisions, the firms will lease office space for the joint workforce and in one location.

Staff have been told that they are able to relocate, but those who are unable or unwilling will be made redundant, as GSK head Malesia Dunn told TribLive: "It will be a mix. Some employees will be offered opportunities to relocate, and if they choose not to or are not offered a position, they will receive a severance package.”

The workforce blow arrives shortly after GSK announced several hundred staff at a site in Cambridge, Massachusetts and Philadelphia face being made redundant when the company opens a new global vaccines centre in Rockville, Maryland.

GSK is expected to cut more than 1,000 jobs – mostly in R&D – and so far all in the US. Novartis is also expected to make staffing culls. Novartis chief executive Joe Jimenez recently said the company would make some ‘very significant’ cost cuts, partly from deal with GSK and also from an ongoing restructure that has seen thousands of back-office jobs relocated to a site in India.

Recently Salix has also axed staff in a restructure following its multi-billion dollar buyout by Valeant. And in the US Eisai announced it will cut 200 jobs – a quarter of its Stateside workforce – to create a ‘more focussed and efficient organisation’.

Lilian Anekwe

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