GSK Lays Off 320 in UK Manufacturing Shake-Up

July 21, 2017

GlaxoSmithKline announced it will undertake a strategic review of its cephalosporins antibiotics business, with an option to sell the business including the associated manufacturing facilities. These medicines are produced at GSK sites in Ulverston, Cumbria, Verona in Italy and part of its Barnard Castle site. The company also decided to outsource some manufacturing activity at its Worthing site in the UK. GSK will continue to manufacture other antibiotics such as Augmentin and will continue to conduct research on new antibiotics. The company has also decided not to proceed with a previously planned investment to build a biopharmaceutical facility in Ulverston as it no longer needs the additional capacity.

In its Consumer Healthcare business, the company intends to sell its Horlicks brand in the UK and is proposing to close the associated manufacturing site in Slough where UK product is made. According to an article in Market Exclusive, the decision hasn’t been received well, and 320 employees will be losing their jobs as a result. In addition, GSK intends to sell the MaxiNutrition brand in the UK. 

Between now and 2020, the company plans to invest more than £140million at its Ware, Hertfordshire, Barnard Castle, Co Durham and Montrose, Scotland sites. The investments will support expansion of manufacturing for respiratory and HIV medicines. This new investment is in addition to the £275million announced last year and investment of over £1.2billion in UK manufacturing since 2012.

Read the full GSK release