GSK to exit manufacturing site in Ireland, cuts 165 jobs

By Flora Southey contact

- Last updated on GMT

(Image: Getty/AndreyPopov)
(Image: Getty/AndreyPopov)

Related tags: Gsk, Ireland

Disappointing sales prompted the decision to close GSK’s skincare manufacturing facility in Sligo, Republic of Ireland.

GlaxoSmithKline (GSK) plans to phase down production at the facility over three years, before exiting the site in the second half of 2021. 165 employees will be affected by the decision.

The dermatology range – made by GSK subsidiary Stiefel – includes medicated skin treatments, as well as over-the-counter (OTC) daily skincare products.

While GSK said the plant had “delivered significant improvements in cost and efficiency” ​in recent years, it does not expect skincare sales to support the site in the future.

“Demand for the products made on site has not grown in line with previous expectations due to the highly competitive market in which we operate, making our current business model unsustainable,” ​the firm said in an emailed statement.

“We thoroughly evaluated a number of alternatives for the Sligo site, none of them were considered feasible without significant further investment,” ​the company added.

The news comes weeks after GSK announced plans to exit a manufacturing facility in Bangladesh​, and lay off 1,000 workers. At the time, a spokesperson told us a business review had prompted its decision to shut the site, where manufacturing and commercial operations were “unsustainable”.

In addition, during the firm’s recent Q2 earnings results, CEO Emma Walmsley announced a restructuring programme​ to be delivered “primarily through supply chain optimisation and reductions in administrative costs”. ​The project is expected to deliver annual savings of around £400m by 2021, she added.

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