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Feb 3, 2009

GSK to cut 6,000 jobs

GlaxoSmithKline is likely to announce thousands of new job cuts this week, a British newspaper is reporting.

The Sunday Telegraph, without citing its sources, says GlaxoSmithKline (NYSE: GSK) is “putting the finishing touches” on plans to lay off some 6,000 of its 100,000 workers. The drug company could announce the cuts when it announces earnings Feb. 5, the newspaper says .

GSK already is in the midst of a $1.4 billion cost-cutting program, announced in 2007, that has led to hundreds of job cuts in the Triangle, where the company employs about 5,000 people. Local cuts have included administrative, scientific and sales workers at GSK's U.S. headquarters in Research Triangle Park as well as manufacturing workers at the company's plant in Zebulon, where about 900 are still employed.

A GlaxoSmithKline spokeswoman said there was nothing she could say about the Telegraph's report.

"We can't comment on rumors," said Mary Anne Rhyne, who is based at RTP.

According to reports, GSK’s new job cuts are likely to be announced as an extension of its current plans. U.S. sales staff are likely to be hard hit as Glaxo shifts its sales model and gets increasing competition from generic drugs, the Telegraph reports.

In November, GSK announced 1,800 job cuts , including 1,000 layoffs, in its sales staff.

Source : Biz Journals
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