Almost exactly one year after GSK’s consumer healthcare business spun off as Haleon, the company is reportedly implementing widespread layoffs in an effort to reduce costs.
According to The Guardian, hundreds of jobs in the UK and potentially thousands worldwide are at risk. Haleon’s current UK workforce stands at approximately 1,700 employees, while its global workforce consists of around 24,000 employees across 170 countries.
Staff members were informed of the job cuts through a series of meetings this week. The consultation process began on Wednesday and will continue until August 25. Following the consultation, some employees will be offered alternative positions within the company, while others will be let go in September.
The layoffs are part of Haleon’s broader cost-cutting program, as the company aims to become a more agile, productive, and efficient organization. The company aims to save £300 million ($393 million) over the next three years, according to a March filing.
Haleon debuted on the London stock market last July with a debt of approximately £10.3 billion ($13.5 billion), as reported by UK finance website This is Money. Since then, Haleon has garnered a positive reputation among customers and was ranked as the most respected pharmaceutical company in Caliber’s 2022 survey.
Meanwhile, GSK, Haleon’s former parent company, recently announced plans to sell 240 million shares, representing a 2.5% stake, to institutional investors at an undisclosed price. The sale is valued at £823 million ($1 billion), according to Bloomberg. GSK currently holds a 12.94% stake in Haleon after the demerger and had previously stated its intention to monetize its holdings over time.
Pfizer, which owns a 32% stake in Haleon following the merger of its consumer health business with GSK’s in 2019, plans to divest its holdings as it is deemed non-strategic, as stated by Chief Financial Officer Dave Denton in an interview with the Financial Times in May.
In the first quarter of this year, Haleon generated £2.98 billion ($3.91 billion) in revenue, following a total revenue of £10.85 billion ($14.25 billion) in 2022.
