A drugs giant is expected to cut up to 4,000 jobs, mostly in its European and US workforce, as it moves towards developing markets such as China.
GlaxoSmithKline is trying to find £1.7 billion of annual cost savings by the end of 2011, and improve efficiency in research and development.
The pharmaceutical powerhouse is concentrating more on emerging markets such where there is more sales expansion potential, and developing its consumer products as it moves its focus away from low growth Western markets.
Glaxo, which employs 99,000 staff worldwide, is expected to announce the cuts with its full-year results on Thursday. It is thought the group will report a return to annual profits growth – with an £835 million sales lift in the last three months of its financial year from its swine flu vaccination sales. It suffered an 11% fall the previous financial year.
However, It is unlikely to receive another such big boost as governments are renegotiating agreed orders, the swine flu pandemic proving less severe than was anticipated.
Copyright Press Association 2010
Department of Health