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Layoffs, consolidation at GSK Consumer Health

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GlaxoSmithKline is paring away at its Consumer Healthcare unit, with a series of layoffs and cost-cutting consolidations. One big move: the company is combining its weight control group--which markets the Alli weight-loss med--and its smoking cessation group, and transferring the whole thing to New Jersey from Pennsylvania. The combination will be called the behavioral sciences group, a GSK exec told the Pittsburgh Post-Gazette. "Frankly, there are a lot of similarities in the behavior required to lose weight and stop smoking," she said.

Overall, the Consumer Healthcare division has about 1,200 U.S. employees, 500 of them in Pennsylvania, 400 in New Jersey, and 300 field-sales folks. The company wouldn't specify just how many jobs will be lost in the restructuring-slash-consolidation. You'll recall that some GSK critics were prodding management to sell Consumer Healthcare last year, but new CEO Andrew Witty quashed that idea. It contributed some $2 billion to the company's $45 billion in 2007 sales.

- see the post at Pharmalot
- check out the Post-Gazette piece

Related Articles:
Witty: Diversifying and derisking GSK
GSK's Witty opts out of generics market
GSK shakes up R&D
Behind the scenes of GSK's overhaul

More stories about GlaxoSmithKline   Andrew Witty   Alli   Consumer Health  

Comments

GSK Consumer Division does NOT have 300 sales people, they have a broker network overseen by Key account Managers, there is about 120 nationally.
I worked for this division when GSK had a salesforce and division office, there is no more since the introduction of EDI ordering for most drug and food and drug/combo - Mass merchandisers.

In addition to the consume reps who are responsible for brokers and accounts like Walmart, Target, etc....there are also medical sales people (generally part-time positions) and dental sales people. So, it shoudl total up to 300 as stated in the article.

At one time the part-time people were not going to be considered employees anymore. GSK was considering a Contract Sales Organization to handle this. Seems like a big expense for p/t people. Could this be the re org the article is refering to?

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