Bloomberg: GlaxoSmithKline To Cut U.S. Jobs Amid Restructuring

(RTTNews) - UK-based drugmaker GlaxoSmithKline plc (GSK, GSK.L) is planning to cut hundreds of jobs in the U.S. as part of a reorganization, Bloomberg reported Friday, citing people familiar with the situation.

The company may announce a workforce restructuring as well as changes at its U.S. operations as soon as next week.

According to the Bloomberg report, Deirdre Connelly, president of Glaxo's North American operations, is slated to speak to U.S. employees on December 3. Connelly is said to be under pressure as U.S. sales are declining amid increased competition for the company's best-selling Advair asthma medication.

While announcing its financial results for the third quarter in mid-October, Glaxo announced a cost-cutting program aimed at saving an annual 1 billion pounds within three years.

Glaxo also announced a restructuring of its pharmaceutical business, citing pricing pressure in the respiratory business. At its pharmaceuticals business - respiratory segment sales for the third quarter declined 8 percent to 1.4 billion pounds, mainly on a 13 percent drop in sales of Seretide/Advair.

Further, Glaxo said at that time that it is also considering a partial IPO of the ViiV healthcare business, in which it owns a 78 percent stake, with Pfizer Inc .(PFE) holding a 12 percent stake and Shionogi & Co. owning the remaining 10 percent stake.

GSK closed Friday's trading at $46.45, down $0.07 or 0.15 percent on a volume of 1.41 million shares.