Count GlaxoSmithKline's Puerto Rican plant as an early Avandia casualty. The drug maker will close the factory in Cidra, Puerto Rico, and transfer production of the diabetes med (and its cousin Avandamet) to other plants. The 900-strong workforce in Cidra will be cut to 250 by year's end.
Of course, the Puerto Rican shutdown is just part of the cost-cutting pain at Glaxo. Yesterday, the company announced a big restructuring plan that will trim $1.4 billion in costs over the next four years and shrink its payroll by at least 5,000. Glaxo also plans to outsource manufacturing of its off-patent drugs, so some 40 percent of the job cuts will come in that sphere. Implementing the restructuring plan is expected to cost $3.1 billion.
- get more about the Puerto Rican cuts from Orange
- read the article on restructuring from The Times
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