GSK planning 1,200 job cuts in Belgium, says paper
GSK vaccines headquarters in Belgium.
GSK is preparing to cut more than 1,200 positions from its workforce in Belgium as part of a cost-saving programme launched by CEO Luke Miels, according to national newspaper L'Echo.
The article notes that the decision was made at a special works council meeting and will affect workers in R&D, manufacturing, and support functions. Meanwhile, the ABVV Chemie trade union has reported that 735 management roles and 482 white-collar positions are being cut at the company and account for around 15% of GSK's Belgian workforce of around 8,300-8,400.
"Management justifies the restructuring with a new strategy and declining production volumes," said the union, which added that the losses "are not a fait accompli" and "for ABVV Chemie, those arguments are insufficient to justify job losses of this magnitude."
GSK has a long history in Belgium, with three major sites serving its vaccines business. Those include a 550,000 sq m manufacturing facility in Wavre, an R&D lab in Rixensart, and a logistics and storage centre in Gembloux.
"We will fight for every employment contract and do everything we can to limit the impact by proposing alternative solutions," said Jamal Amraoui, chief delegate of the ABVV at GSK.
Earlier this year, Miels announced a three-year cost-reduction programme at GSK, with the savings reinvested into its late-stage pipeline and R&D as it contemplates the loss of patent protection for HIV blockbuster dolutegravir from 2028 onwards. Miels has revealed the group is targeting £1.9 billion ($2.51 billion) in annual savings by 2029 for costs of £2.4 billion, but has not divulged the scale of job losses that will result.
Last month, it was reported that around 650 jobs will also be lost at GSK as a result of the closure of a flu vaccine manufacturing facility in Dresden, Germany, with production being consolidated into a single plant in Ste-Foy, Canada.
Meanwhile, in July, the UK-headquartered group said it was shaking up its R&D network in the UK, building a brand new R&D centre in Cambridge and transferring operations there from its current site in Stevenage, Hertfordshire, which has been in operation for decades and is due to shut down in 2029.
Shares in GSK were trading up 2% on the FTSE 100 today after news of the Belgian job reductions emerged. The company said the restructuring is intended to "drive strong operational performance and shareholder returns over the next five years, delivering near- and long-term growth and much-needed new treatments for patients."
