Job cuts ahead: GSK plans US workforce restructuring
- In October, GSK announced plans to cut costs by $1.56 billion over the next three years.
- GSK's U.S. sales are down, largely due to competitive pressure against its top-selling drug, Advair, which is used to treat asthma.
- Deirdre Connelly, president of GSK's North American operations, is expected to make some sort of announcement this week related to job cuts in the United States. The cuts are expected to number in the hundreds.
London-based GSK has not had the rosiest year. The company's best-selling drug, Advair, is under competitive pressure, with analysts predicting 30% lower revenues by 2015 (compared with total revenues of $5.3 billion last year).
The stock is also down 13% YTD. So what, other than necessary job cuts, does the future hold for Glaxo? Spokespeople say that the company will be focusing on shoring up marketing efforts for new respiratory drugs in the short-term and building up its pipeline for the future.