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Glaxo to cut 3,400 jobs
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October 5, 1999: 11:11 a.m. ET
British drug maker: Cost-cut plan to save $613M a year beginning in 2003
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LONDON (CNNfn) - Glaxo Wellcome, Britain's largest pharmaceutical company, said Tuesday that it will cut 3,400 of its more than 21,000 jobs by 2003 as part of an international cost-cutting program.
Glaxo -- completing a year-long manufacturing review -- said shutting factories, cutting staff and restructuring procurement and manufacturing processes will save the company 370 million pounds ($613 million) a year by 2003.
Restructuring costs of 520 million pounds will be incurred before the benefits flow through to the bottom line.
Staff reductions are an integral part of the new plan, with Glaxo reducing its worldwide employment numbers to approximately 18,000 by 2003.
The bulk of the cuts will be in the U.K. workforce, where 1,700 jobs will disappear out of a current workforce of 8,250. Two U.K. production facilities will close. Details of job losses outside Britain were not disclosed.
The stock market had little reaction to the news, with Glaxo stock rising just 0.6 percent to 1,601 pence.
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Glaxo Wellcome
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