GSK eyes over 1,200 Belgian job cuts in cost-saving drive

British pharmaceutical giant GSK has announced plans to cut up to 1,217 permanent jobs across its sites in Belgium as part of a sweeping three-year global restructuring programme.

CEO Luke Miels had launched the effort in July as part of a broader push to speed up drug development and reassure investors that GSK can manage an approaching patent cliff for its blockbuster HIV drug dolutegravir.

Globally, GSK had 66,841 employees at the end of last year.

According to its annual report, the proposed cuts would affect some of its more than 8,000 employees at sites in Rixensart, Wavre and Gembloux, though factory workers would be spared.

Changes include simplifying the company's research, manufacturing and support operations, including through increased use of digital tools and more automation.

Meanwhile, Belgian labor unions have been formally notified under collective-dismissal procedures, prompting local government officials to monitor the situation closely to ensure impacted workers receive adequate support.

GSK said it will remain the country's largest biopharmaceutical sector employer and that Belgium will continue to produce the majority of its vaccines.

Shares in the company were up 2.6% at 1430 GMT, in line with broader sector gains.

First reported by local media, the cost-efficiency drive aims to slash annual overhead by £1.9 billion ($2.5 billion) by 2029.

GSK boss Luke Miels is pivoting capital toward high-priority drug pipelines and late-stage vaccine research to offset an impending patent cliff.