Region’s jobs not at risk, says Glaxo (From The Northern Echo)

Region’s jobs not at risk, says Glaxo

8:59am Friday 5th February 2010

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WORLDWIDE drugs firm GlaxoSmithKline yesterday revealed it aims to slash annual costs by a further £500m within two years – putting hundreds of UK jobs at risk.

However, it is understood the firm’s plans will not impact on its manufacturing site in Barnard Castle, which employs up to 900 staff.

Much of the planned cost savings will be in its research and development division, particularly neuroscience, dealing with depression and pain.

Glaxo made £1bn worth of cost savings last year, but wants to save another £2.2bn by 2012.

A spokesman said: “As before, we will not be providing targets for job reductions and we will announce restructuring outcomes once employees, relevant works councils and trade unions have been consulted.”

Glaxo’s plans for savings were revealed in a trading update yesterday, in which it announced a 12 per cent rise in underlying pre-tax profits to £8.7bn for last year, up from £7.8bn the previous year.

Global demand for swine flu treatment and vaccines helped it return to annual sales growth for the first time since 2007, with turnover up by 16 per cent to £28.4bn.

The group made sales of £883m from its H1N1 flu pandemic vaccine last year – largely in the fourth quarter.

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