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GSK plans job cuts to fund £400m Cambridge campus and boost R&D

GSK is set to reduce its back office workforce to help finance a new £400m research and development campus in Cambridge, aiming to strengthen its drug pipeline.

  • GSK plans to cut back office jobs to fund a new £400m R&D campus in Cambridge.
  • The new 300,000 square foot site will house over 1,000 GSK scientists.
  • The company also intends to double its phase-three trials this year from 10 to 20.

GSK is poised to reduce its back office headcount to help fund a new £400m mega-campus in Cambridge. This move is intended to bolster its drugs pipeline and address a looming patent expiry.

Chief executive Luke Miels unveiled plans for the 300,000 square foot site, which will become the new home for GSK's research and development arm and host more than 1,000 scientists. The group is expected to implement layoffs to support this investment and its operating margin.

The company will vacate its Stevenage R&D site for Cambridge by 2029. Miels stated that this investment "will accelerate our R&D and help us deliver new, competitive products."

The job losses are anticipated to affect back office roles, such as human resources, and involve shifting staff from general medicine divisions to support faster-growing areas of the business. GSK also plans to double its phase-three trials this year, from 10 to 20.

Why this matters: This investment and restructuring by GSK aims to enhance its research and development capabilities and address financial challenges from an upcoming patent expiry, potentially impacting its competitive position in the pharmaceutical industry.

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