Parexel to bring in 450 laid-off GSK employees in North Carolina

By Zachary Brennan

- Last updated on GMT

The deal to bring in GSK employees comes two years after the two forged a strategic partnership
The deal to bring in GSK employees comes two years after the two forged a strategic partnership

Related tags: North carolina

GlaxoSmithKline is significantly reducing the size of its R&D team in the US, though about 450 of those employees who will be laid off in the Research Triangle Park (RTP), North Carolina area will find new jobs with CRO Parexel.

GSK and Parexel have signed a letter of intent regarding the creation of a dedicated GSK business unit within Parexel​,” the company told us in an e-mailed statement.  “It will provide a variety of clinical development services and be largely based in the RTP area.  Under the agreement, approximately 450 employees currently working in R&D in RTP will be offered roles at Parexel​.” 

The cuts and transfers to Parexel are part of GSK’s restructuring, which will deliver approximately £1bn/$1.6 billion of new annual cost savings over the next three years across their global commercial operations, support functions, R&D and manufacturing units. There are about 2,500 GSK employees and contractors working in R&D in RTP.

In R&D, the majority of jobs affected are in Research Triangle Park (RTP), NC, as we consolidate our geographic footprint and locate the majority of our R&D organization into two major centers– in the Philadelphia area and Stevenage (UK)​,” a GSK spokeswoman told us.  “Some R&D roles will be relocated to the Philadelphia area and some staff will be offered relocation​.”  

Back in 2010, GSK selected Parexel as its strategic partner​, along with competitor PPD. The deals were part of a broader move by GSK to simplify clinical development and increase productivity. A GSK spokeswoman told us that this latest deal is an outgrowth of that previous collaboration.

The reduction of jobs in our US Pharmaceuticals business will affect employees in Philadelphia, RTP and the field​,” GSK said. “Retail sales teams focused on launching new medicines to the market will largely not be affected.  Our proposed changes to R&D will sharpen the focus in discovery and development and reduce funding in certain areas of the pipeline​.”

Parexel declined to comment on the latest letter of intent. 

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