Glaxo cuts 1,000 jobs

GlaxoSmithKline, the world's second biggest drugmaker, is cutting approximately 1,000 US sales jobs by the end of 2008 as it reshapes the operation to compete in an increasingly tough market. The move, which amounts to a reduction of around 12 percent, will take the number of sales representatives employed by Glaxo in the United States down to around 7,500 from 8,500, a company spokesman said on Wednesday.
The reductions will not be made across the board, however. While representatives dealing with primary-care products will feel the brunt of the cutbacks, the British-based company is planning to add jobs in vaccines and specialty pharmaceuticals, including oncology. The move to cut jobs had been expected. Chief Executive Andrew Witty said last month he was looking at all aspects of Glaxo's US operations, including the sales team, and Glaxo said on Tuesday that an announcement was imminent.
Drug companies world-wide have eliminated thousands of jobs in the past two years as a lack of significant new drugs, declining sales of lucrative flagship franchises and fierce competition have cut into profits.