GlaxoSmithKline Hands Out 350 Pink Slips
June 5, 2015
By Riley McDermid, BioSpace.com Breaking News Sr. Editor
GlaxoSmithKline and Novartis AG has begun laying off 350 workers in Parsippany, N.J. as the company streamlines its operations, said a notice filed with the New Jersey Department of Labor & Workforce Development this week.
The cuts began this month and will continue well into next year, eventually culminating in the establishment of one centralized Parsippany location. Right now the companies’ two operations are split, with Novartis employees based at 200 Kimball Drive and Glaxo workers at 1500 Littleton Road.
In the WARN notice, Glaxo said the newly combined consumer healthcare business was making the cuts “to meet established financial and synergy targets and eliminate duplication." Malesia Dunn, a GlaxoSmithKline spokeswoman, said in a statement to reporters that workers from both companies will be affected.
"We are looking at bringing together the very best talent from both organizations," said Dunn. She added that job placement and severance packages would be available but did not have specifics about what those exit benefits might encompass.
Glaxo and Novartis launched the joint venture as part of a massive $20 billion three-part asset swap completed in March. In the new business, Novartis owns about a third the joint venture, which focuses on nutrition, skin care, oral products and wellness.
When Will Pfizer's Breakup Happen?
Speculation that the revamping of Pfizer Inc. ’s internal business structure could happen as soon as this year has biotech wondering just when this Big Pharma company could see changes.
Last week an analyst with J.P. Morgan said he thinks there will be a much faster timeline than most of Wall Street had predicted for Pfizer’s stated mission to refocus its efforts on new medicines.
Pfizer initially announced in 2012 that it would be shedding units that were non-essential to that goal. It then promptly sold its nutrition silo to Nestle for $11.85 billion, which was rapidly accompanied by a public spin-off of its animal health business for $2.2 billion.
“While a Pfizer break-up would likely be a 2017 event, we see potential catalysts in 2015-2016," said Chris Schott, an analyst at J.P. Morgan. "Three years of audited financial statements (2014-2016) are required before any part of Pfizer can be spun off, and we also see 2017 as an attractive time for action as investors see Pfizer’s innovative pipeline clearly contributing to growth and the established business having transitioned to a more stable profile."
BioSpace wants to know what you think: Will Pfizer be a changed company by the end of 2015?