GlaxoSmithKline (LON:GSK) will cut about 650 positions in the US, Reuters has reported. The move is related to the blue-chip drugmaker’s global restructuring programme announced this summer.
GSK’s share price has been subdued in London in today’s session, having inched 0.19 percent lower to 1,550.20p as of 08:58 BST. The stock is fractionally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.1 percent lower at 7,375.72 points. The pharmco’s shares have added nearly three percent to their value over the past year, as compared with about a 0.3-percent gain in the Footsie.
GSK to cut 650 jobs
Reuters reported yesterday that GSK had said that it would cut about 650 positions in the US. Company spokeswoman Mary Anne Rhyne said in a statement told the newswire in a statement that the cuts will include about 100 each in its back office in Philadelphia and at Research Triangle Park, North Carolina, and 450 sales representatives. She added that the savings from the cuts will help fund increases in research and development and commercial support of new products. The blue-chip drugmaker employs about 15,000 people in the US.
The news comes after in July, GSK announced an R&D shake-up alongside its interim results, aiming to capitalise on the assets in its early-stage pipeline and focusing on science related to the immune system, the use of genetics and investments in advanced technologies.
Analysts on group
Deutsche Bank reaffirmed GSK as a ‘hold’ today, valuing the shares at 1,525p. According to MarketBeat, the UK drugmaker currently has a consensus ‘hold’ rating and an average price target of 1,530.08p. Last week, Liberum trimmed its stance on the blue-chip pharmco to ‘hold’ with a target price of 1,700p.