GSK still quiet about layoffs

February 5, 2009 2:29:07 PM PST
Rumors of GSK layoffs and how those cuts will affect RTP workers continue to circulate. On Monday, Eyewitness News reported the worlds largest drugmaker planned to make cut as part of an ongoing restructuring program.

Although GSK did not comment publicly on the impending layoffs, it was rumored between 6,000 and 10,000 workers worldwide would be affected.

Today, the company released its fourth quarter profits and those profits fell 7.1 percent. The company said it's been hurt by legal costs.

GSK said it is struggling to overcome an influx of cheaper generic drugs that eroded U.S. sales of at least four medicines last year.

Also, safety concerns about the diabetes drug Avandia affected profit.

GSK employs more than 5,000 at its Triangle location. Eyewitness News contacted the company and spoke to a representative in Philadelphia.

Spokesperson Sarah Alspach told ABC11 that GSK is not saying how many jobs will be cut. However, the company is announcing an expansion of its restructuring program.

"We will do everything we can," Alspach said in the phone interview. She said GSK is conscious of the effect of the program on its employees.

Alspach went on to say, "between now and April, expect to hear more on job cuts/layoffs."

Just last year, GSK's U.S. sales force was restructured, cutting about 1,000 positions. The company continues to evaluate what additional changes need to be mande.

The company's main goal is to put resources towards areas of high growth. Areas like "vaccines, consumer health car and oncology," Alspach explained.


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