UNITED KINGDOM — Amidst efforts to streamline operations and drive cost savings, Haleon, formerly known as GSK’s consumer healthcare business, is reportedly initiating extensive layoffs across its workforce.
The company aims to optimize efficiency and productivity by reducing expenses, a move that could impact hundreds of jobs in the U.K. and potentially thousands worldwide, according to The Guardian.
Haleon currently employs around 1,700 individuals in the U.K. and boasts a global workforce of approximately 24,000 across 170 countries.
The company communicated the impending job cuts through a series of meetings with staff members. A consultation process began this week and will continue until August 25.
Following this, affected employees will be presented with alternative roles within the company, while others will part ways with the company in September.
This decision is part of Haleon’s broader cost-cutting program, as outlined in a March filing. The company aims to transform into a more agile and efficient organization, with the goal of saving £300 million (US$393 million) over the next three years.
While a company spokesperson did not immediately respond to inquiries regarding the layoffs, Haleon made its debut on the London stock market in July of last year with a significant debt burden of around £10.3 billion (US$ 13.5 billion).
Notably, the company garnered recognition by ranking first in Caliber’s 2022 survey of the most respected pharma companies.
Meanwhile, Haleon’s former parent company, GSK, recently announced plans to sell a 2.5% stake, equivalent to 240 million shares, to institutional investors at an undisclosed price.
The sale is estimated to be worth £823 million (US$1 billion), as reported by Bloomberg. GSK had retained a 12.94% stake in Haleon following the demerger. It had previously expressed intentions to monetize its holdings in Haleon over time.
Pfizer, which held a 32% stake in the company after merging its consumer health business with GSK’s in 2019, also plans to divest its holdings.
Chief Financial Officer Dave Denton stated in May that it is not a strategic investment for Pfizer. The Financial Times reported that Haleon generated £2.98 billion (US$3.91 billion) in revenue during the first quarter of this year, following a successful 2022 with total revenue of £10.85 billion (US$14.25 billion).
As Haleon takes steps to optimize its operations, these strategic moves by both GSK and Pfizer highlight the evolving dynamics within the pharmaceutical industry and the pursuit of reshaping portfolios to drive growth and focus on core strategic objectives.
Sanofi and Haleon to work towards petroleum-free consumer health bottles
Meanwhile, in an exciting collaboration, Sanofi and Haleon have joined forces with PA Consulting and PulPac’s Bottle Collective to advance the development of cellulose-based bottles as a sustainable alternative to virgin plastics derived from petroleum.
This joint effort aims to revolutionize consumer health product packaging by reducing reliance on single-use and commodity alternatives.
The Bottle Collective, spearheaded by PA Consulting and PulPac, is focused on scaling up the Dry Molded Fiber bottle process, which promises high-speed production, cost efficiency, and recyclability.
Functioning prototypes have already been successfully created by PA Consulting and PulPac, paving the way for the realization of branded bottles that can effectively replace traditional plastic bottles in various applications, including food, beverages, consumer health, and fast-moving consumer goods (FMCG).
Established earlier this year, the Bottle Collective has been dedicated to finding fiber-based alternatives to plastic bottles, with the ultimate goal of driving sustainable practices and reducing the environmental impact of packaging.
By harnessing the power of cellulose-based materials, this collaborative effort has the potential to reshape the industry landscape and offer innovative packaging solutions that prioritize ecological sustainability.
Sanofi and Haleon’s involvement in this venture highlights their commitment to sustainability and their recognition of the urgent need to address the environmental challenges posed by single-use plastics.
By joining forces with PA Consulting and PulPac, these pharmaceutical companies are actively contributing to the development and adoption of environmentally friendly packaging alternatives, creating a positive impact on the consumer health sector and beyond.
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