BRUSSELS, Oct 14 (Reuters) – GSK said on Wednesday it could cut as many as 1,217 jobs in Belgium, in the first sign that the British drugmaker’s three-year plan to save £1.9 billion in costs is moving into action.
CEO Luke Miels had launched the effort in July as part of a broader push to speed up drug development and reassure investors that GSK can manage an approaching patent cliff for its blockbuster HIV drug dolutegravir.
Changes include simplifying the company’s research, manufacturing and support operations, including through increased use of digital tools and more automation.
The proposed cuts would affect its more than 8000 employees at sites in Rixensart, Wavre and Gembloux, but not include factory workers. Globally, GSK had 66,841 employees at the end of last year, according to its annual report.
GSK said it will remain the country’s largest biopharmaceutical sector employer and that Belgium will continue to produce the majority of its vaccines.
The plans were presented to unions earlier on Wednesday, Belgian newspaper L’Echo reported. Unions did not immediately respond to Reuters request for comment.
The company expects the proposed changes will help its factories to better match demand for some of its established vaccines. Last month, GSK said it plans to shut down a vaccine factory in Dresden, Germany next year citing decreased demand for egg-based flu vaccines.
GSK will continue working with Belgian universities and research centres but focus R&D resources on high-priority projects, including its mRNA flu vaccine, it said on Wednesday.
(Reporting by Makini Brice and Bhanvi Satija. Editing by Elaine Hardcastle, Mark Potter and Louise Heavens)
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