Glaxo to axe 200 jobs at its North East factory

Dec 3 2008 by Karen Dent, The Journal

DRUGS giant GlaxoSmith- Kline yesterday revealed that 200 jobs will go at its County Durham factory, but pledged to invest £17m in the site next year.

The news was greeted with shock as the pharmaceutical group is Barnard Castle’s biggest employer, with 961 permanent staff and 65 agency workers at the 60-acre Harmire Road plant.

The jobs are expected to go over the next year to 18 months. The company announced a review of all its sites last year to save £700m over three years and began seeking voluntary redundancies in Barnard Castle last month. It yesterday said 48 people had come forward already.

Glaxo hopes the remaining 152 posts will go through further voluntary redundancy and early retirement. A separate design review in October identified 20 jobs to be shed in addition to those announced yesterday.

Site director Roger Connor said: “We very much regret the need for these proposed job losses but they are essential to remain competitive within the global pharmaceutical market.

“It is a difficult proposal for the company to make and I want to emphasise that it is not a reflection on the quality of our staff or on our commitment to the Barnard Castle site.”

The announcement is the result of a three-month site review of staffing levels, structure and cost-cutting as Glaxo attempts to compete with makers of cheaper generic medicines.

However, it reiterated its commitment to Barnard Castle, which received investments of £48m in the last two years and will see another £17m spent next year. Mr Connor said: “These investments and the proposed restructuring announced will put us in the best possible position to ensure a sustainable future for the site.”

The number of redundancies was higher than unions had expected. The GMB’s Durham organiser Stephen Thompkins said: “I’m shocked that there’s 200. Obviously, it’s a very big hit.

“Barnard Castle’s community basically is Glaxo. Everyone knows someone who works there. It just seems the North East at the moment is being decimated with redundancies.”

He said the timescale gave a breathing space to save jobs if the current economic climate improved and added: “On the plus side, there is going to be investment in Glaxo when some sites are shutting their doors.”

Unite regional officer Bob Bolam said: “We never expected this many to go. This site employs families across the town and this has happened just before Christmas. I am shocked.”

Glaxo will work with One North East and the County Durham Development Company to provide retraining and community support for the town.

Bishop Auckland MP Helen Goodman said: “I do not underestimate the impact on employees and their families. At this time it is important that we do everything possible to enable people to find new jobs or even start their own small businesses.”

Councillor Richard Betton, leader of Teesdale District Council, was relieved the redundancies were not immediate. He said: “It is also reassuring the site director has emphasised that Barnard Castle continues to be a key site for GSK. ”