300 jobs to go as drugs giant tightens belt

Nov 5 2008 by Karen Dent, The Journal

DRUGS giant GlaxoSmithKline has started a voluntary redundancy programme at its County Durham site as part of a global shake-up which has already seen 300 jobs go at its plant in Cumbria.

The company refused to put a figure on the number of people it wanted to volunteer for redundancy but said it was vital the Barnard Castle site retained the right mix of skills and capabilities for the future. Those who opt for voluntary redundancy are expected to leave GSK by the end of the year, the company said.

GSK is Barnard Castle’s biggest employer with around 1,050 staff working at the plant, which manufactures medicines such as the Zovirax cold sore treatment and plays a vital role in the launch of new products.

The company recently posted a 14% drop in its third quarter profits, which stood at £1.88bn for the three months to the end of September. It blamed competition from cheaper generic drugs for the fall. GSK is attempting to save £700m company-wide by the end of 2012 as it tries to cut cost to compete with its rivals.

Bob Bolam, a regional officer with Unite with responsibility for the pharmaceutical and chemical industries, said: “In any form of restructuring we would as a trade union argue in favour of volunteers if the company make the terms of the redundancy package good enough.” But added: “The location of Barnard Castle itself is remote in the Tees Valley conurbation. If people do go, what will be the prospects of jobs for them?”

GSK, which is the world’s second-biggest drugmaker, employs around 100,000 people in more than 100 countries. It has already announced 300 job losses from its 540-strong workforce at Ulverston in Cumbria, which employed around 1,000 people in 2002. The company said it would consult with unions and other employee representatives before any staff were shed at Barnard Castle.