Europe, not the US, will be targeted by the reductions, a GlaxoSmithKline (GSK) spokesperson told WRAL News.
“We are looking at opportunities to develop new technology in manufacturing and R&D which we believe will simplify supply chain processes, shorten production cycle times, decrease our carbon footprint and increase efficiency in clinical development,” Mary Ann Rhyne, director of US media relations for GSK, told WRAL.
“The focus of this restructuring is Europe where it appears that difficult economic conditions will continue for the foreseeable future,” said Rhyne. “Andrew [Witty, chief executive] said we need to ’right size’ for this environment.”
Witty disclosed that GSK would cut costs by $1.57bn annually through 2016 with associated charges of another $2.3bn.
“Much of the change in R&D and manufacturing will not touch jobs at all,” Witty said. “It will look much more at our asset base and it will be much more around changing what that particularly manufacturing environment looks like over the next five or six years.”
Rhyne said GSK has already implemented numerous changes in the GSK. The company has refocused and rebuilt R&D teams and tightened its drug development focus.
