British pharma giant GlaxoSmithKline (GSK) is set to lay off 650 employees in its US operations in line with a global restructuring strategy announced in July this year.
GSK recently revealed its target of generating annual cost savings of £400m by 2021 by implementing the restructuring program across the group.
The restructuring program was taken up by the firm to considerably enhance its competitiveness and efficiency with savings delivered mainly via supply chain optimization and reductions in administrative costs.
According to GSK, 450 field sales roles and 200 back office and support roles will be impacted in the US with nearly 100 each in Philadelphia and in the Research Triangle Park in North Carolina, reported Reuters, citing GSK spokeswoman Mary Anne Rhyne.
GSK is expected to utilize the cost savings generated from the latest job cuts in its US operations on research and development and marketing of its new products.
The company has nearly 15,000 employees in the US.
GSK’s restructuring program was announced during the release of its Q2 2018 results. Overall, the company expects to take £0.8bn cash and £0.9bn non-cash charges over the next three years.
In July, the British pharma group had also unveiled a new approach to research and development, under which it will focus on science related to the immune system, the use of genetics and investments in advanced technologies.
GSK had also entered into a strategic partnership with 23andMe to use human genetics to improve selection of drug targets and clinical development of new drug candidates.
The four-year collaboration will combine the genetic resources and advanced data science skills of 23andMe and GSK’s scientific and medical knowledge and commercialization expertise.
In another development, the British pharma company secured approval in the European Union in late August for its anti-IL-5 biologic Nucala (mepolizumab) as an add-on treatment for severe refractory eosinophilic asthma in paediatric patients, aged six up to 17 years.