GlaxoSmithKline Layoffs 150 Jobs in Pennsylvania

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Mar 20, 2015 06:07 AM EDT

Biopharma businesses have been shedding some extra weight this year and among them is GlaxoSmithKline. The biopharma company has issued a statement that may cost over 150 workers their jobs.

According to the Philadelphia Business Journal, GlaxoSmithKline first announced that the company was planning on dismissing a number of workers back in December 2014. The biopharma company will now be following through with the plan beginning with the Philadelphia region.

A letter from the company was sent to Dmitry Zhmurkin, Director of the Bureau of Workforce Partnership & Operations in the Pennsylvania Department of Labor and Industry on Feb. 25, 2015. The letter is posted on Scribd and began with the following statement:

"Although GlaxoSmithKline ('GSK' or the 'Company') is not closing operations or relocating facilities in Pennsylvania, in accordance with the Federal and the City of Philadelphia's Worker Adjustment and Retraining Nullification Acts (WARN), we are providing you with notice that the Company will be downsizing."

Meanwhile, GSK's spokeswoman, Melinda Stubbee states the following about the layoffs: "These are not new job reductions, but are the continuing implementation of the reductions we announced in early December 2014. Groups affected by the restructuring are making progress at different paces, and that will last at least through this quarter and possibly longer."

In the rest of the letter, the company states that it will be eliminating 150 "roles," relating to GSK's commercial and research-and-development sectors in Pennsylvania, reports the Philadelphia Business Journal.

The company explains the reason for the downsize stating: "The restructuring is intended to improve operational performance and contribute to multi-year cost-saving initiatives across our commercial operations, global support functions as well as R&D, commercial and manufacturing facilities."

The Philadelphia Business Journal reports that the number of layoffs indicated in the letter might be an overestimation and could be fewer. However, the planned dismissals are permanent and not subject to change, according to the letter sent to the Pennsylvania Department of Labor.

The letter also states that the affected employees will get a 60-day advance notice of their dismissal and will continued to be paid with benefits during the period. In addition, the affected employees are eligible to receive severance benefits upon termination.

The letter states, "These benefits include severance pay, medical coverage for the severance period and outplacement support."

According to Gen News, GlaxoSmithKline is just one of nine biopharma companies that have planned layoffs in 2015. The list includes Pfizer, Merck & Co., and Sanofi, among others. The report adds that over 1,400 jobs in the industry have been eliminated since the beginning of the year.

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