GlaxoSmithKline plans to offload 130 brands in cost-cutting drive
Pharma giant GlaxoSmithKline (GSK) says it intends to offload more than 130 of its non-core brands as it extends a major cost-cutting programme that saw it announce 320 job cuts last week. It is one of the first major moves by GSK under new chief executive Emma Walmsley, and is meant to help deliver an additional £1bn in annual cost savings by 2020.
"A key driver of the new savings will be through realising efficiency improvements in the group's supply chain," GSK said.
"This will include changes to GSK's manufacturing network, divestment and exit of more than 130 non-core tail brands (£500m in annual sales), reductions in overheads, improved procurement savings and more strategic supplier relationships."
The company also said it would be terminating select development programmes which are "unlikely to generate sufficient returns" for the business.