GSK to cut jobs amid £1.9bn cost-cutting plan and bid for faster drug development

British pharmaceutical company GSK is embarking on a significant transformation, including sweeping job cuts and a multi-billion pound cost-cutting program. The company, which is headquartered in London, aims to reduce costs by £1.9 billion, a move that will enable a £400 million investment in UK life sciences over the next three years. This includes the establishment of a new research and development centre in Cambridge, where more than 1,000 scientists will be relocated from various sites.

The new Cambridge centre, spread over 280,000 square metres, will serve as a hub for GSK's research activities in areas such as oncology, respiratory, and vaccines. The company plans to upgrade its laboratory facilities in nearby Ware and close its R&D site in Stevenage by 2029. The move is expected to accelerate the development of new, competitive products and integrate GSK further into the UK's life sciences ecosystem.

GSK's investment in the UK was welcomed by local officials, with Andy Burnham describing it as a "vote of confidence in British business." The British government also expressed support for the move, highlighting its potential to boost homegrown innovation and expertise in the life sciences sector. GSK's move comes as the company seeks to develop new medicines more quickly under its new chief executive, Luke Miels, who has pledged to review the company's drug pipeline and launch more phase 3 trials. With the establishment of the new Cambridge centre, GSK is positioning itself to benefit from the UK's growing life sciences ecosystem, which already attracts significant investment and expertise.