UK worst hit in Europe by pharma industry cutbacks
pharmafile | March 5, 2009 | News story | Business Services, Sales and Marketing |Â Â JobsÂ
The pharmaceutical industry's prolonged and painful period of restructuring looks set to continue, and UK pharma is thought to be the worst hit in Europe.
One leading recruitment boss says he has never seen such heavy cutbacks in the industry, with the current climate far worse than the downsizing seen in the early nineties.
Nick Stephens is chief executive of RSA, a recruitment company with offices in the UK, France, Switzerland and China. He says the UK's long-term outlook is bleak for jobs in sales, R&D, production, or anything else that can be outsourced.
And unlike during any other period of pharma job losses, he says the cuts have been coming "fast and deep".
In total it is estimated that the UK industry has cut 11-15% of jobs across all divisions over the last two years.
The UK's status as a centre for early stage research and manufacturing has meant it has been hit hard, as the areas have seen some of the biggest cutbacks.
And while thousands of jobs have already been cut these and other departments, more is yet to come. In February, GSK's chief executive Andrew Witty confirmed there would be further cuts, but the company has not yet revealed which areas will be cut back.
A spokesman for the company said it had cut around 10% of its global workforce in the 12 months to February, and that GSK's leadership was now in the 'design phase' of the next restructuring.
Meanwhile many employees at Pfizer and Wyeth are braced for bad news, following the announcement of their merger.
There are approximately 6,500 people employed by the two companies in the UK, and job losses are certain to be announced in the coming months.
Cuts across the board
RSA's Nick Stephens says his experience has been that primary care salesforces have been the worst affected area, followed by sales and marketing more generally, and then pre-clinical R&D.
Jobs in pre-clinical and clinical development have suffered heavily, and Stephens doesn't see that there will be any recovery in this area.
"I think the last round of PPRS negotiations have shown the industry that there's no reason to do it [R&D] here anymore. The margin is too tight, there's now no reason to keep R&D here. It's cheaper to do it elsewhere and it's cheaper to do manufacturing elsewhere."
One recent report has predicted that $15bn of global pharma R&D spending will soon move to China, a large percentage of this being disinvestment in Europe. Manufacturing is already in the process of shifting eastwards, with costs 50% cheaper in India than in the West.
The outlook is also grim for biotech, a sector Stephens says has experienced "absolute paralysis". He added: "You're going to see some more of those guys got to the wall."
Another current trend in the UK recruitment market is a mismatch between what pharma companies expect from candidates and what the potential employees are willing to do.
Stephens says this is symptomatic of a cautiousness and unwillingness to move jobs unnecessarily.
He says: "The [pharma company] perception is that people should be cheaper. The individual's perception is that 'my stability is worth a damn sight more than opportunity right now'. So it's better the devil you know for them."
But there is a silver lining for some. He says the areas of market access and healthcare economic outcomes research as "green shoots" of growth where companies are actively recruiting. Other areas for potential new work are in medical, speciality pharma sales and M&A. Jobs are there, he says, but people are making decisions more slowly.
GSK's spokesman confirmed that there are some areas where the company is expanding and looking for new recruits.
He said Andrew Witty's vision for the company meant it would be hiring in growing geographical areas – namely emerging markets in Asia, Eastern Europe and Latin America – as well as expanding therapy areas, in particular oncology.
Stephens suggests that anyone worried about the security of their current job can help themselves by making themselves indispensable. This might entail putting in some extra hours in and staying as close to headquarters as possible, but is likely to pay off.
"When you're frightened, it's easy to do nothing, but that's the worst thing to do. Don't get in at 9.29 and leave at 17.31; be seen to be adding value; make your boss look good, and ask for more work."
To those already made redundant, there are fewer options. Anyone previously in primary care sales, he suggests they find a new industry; for those working at senior levels, the best opportunities lay in finding interim work.
"People at senior level can make a reasonable living doing interim work. Some of them make a much better and enjoyable living than they had in companies."
But overall, Stephens says the change is seismic and irreversible: "This is a structural change in our industry. I don't think you're going to see much serious investment in pre-clinical research, and I don't think we'll see a recovery in clinical research in the UK."
For those candidates he says: "Get a passport. I'm not joking."
Related stories:
GSK expands cost cutting drive
Monday, February 09, 2009
AstraZeneca to cut more jobs as sales stagnate
Monday, February 02, 2009
GSK plans research job losses in UK
Friday, October 03, 2008
GSK to close Dartford manufacturing site by 2013
Friday, November 14, 2008
Pfizer cuts 700 jobs in France
Wednesday, December 17, 2008
Related Content
Gilead to lay off one fifth of sales force
Gilead Sciences is preparing to lay off around a fifth of its salesforce in anticipation …
Avara Avlon falls into administration putting 270 Bristol jobs at risk
Bristol-based pharma firm Avara Avlon Pharmaceuticals has fallen into administration putting the jobs of all …
Vertex ousts COO Ian Smith over ‘personal behaviour’
Boston-based firm Vertex Pharmaceuticals has fired Chief Operating Officer (COO) and interim Chief Financial Officer …
