Glaxo axes 350 jobs to cut costs

Glaxo has faced stiff competition from cheaper generic drugs

GlaxoSmithKline, the world's second largest drug maker, is to cut 350 research staff as part of a plan to bolster productivity and cut costs.

The company did not say where it planned to make the cuts, which represent 2% of its 17,000 research and development (R&D) staff.

In October, Glaxo said it would cut jobs and possibly close some sites as part of a £700m cost-saving programme.

Glaxo faces falling profits due to competition from generic drug brands.

It is also experiencing an ever-dwindling pipeline of prospective future drugs, and various setbacks in releasing new products.

In a statement, the company said it was reshaping its R&D operations to "take advantage of new scientific opportunities and improve [its] productivity".

"Regrettably some job reductions are necessary and we will do everything we can to support these employees who are affected," the statement said.

The cost-saving programme announced in October is expected to amount to a pre-tax saving of up to £700m ($1.4bn) by 2010.

In February it confirmed it would cut 330 of the 537 jobs at its Cumbria factory.

Glaxo is the world's second largest drug maker after US drugs giant Pfizer.