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UK: GlaxoSmithKline job cuts despite profit increase?
The global pharmaceutical company GlaxoSmithKline has just revealed a 12% increase in annual profits for 2009. Despite this, it plans to enlarge its existing restructuring plan which envisages £1.7bn of savings by 2011 to produce another £500m of cost reductions by 2012. The company would not comment on the number of job cuts it would be targetting but said it would ‘try to preserve jobs’ and would consult with employees, works councils and trade unions before announcing ‘restructuring outcomes’.
This news follows AstraZeneca’s warning last week that it would seek to reduce its own workforce by 8000 on top of the 12 600 redundancies it has already made.