GSK to cut jobs amid £1.9bn cost-cutting plan and bid for faster drug development

GSK announces sweeping job cuts and £1.9bn cost-cutting programme to fund £400m UK life sciences investment, including new R&D centre in Cambridge.

About the announcement

• £1.9bn cost-cutting programme over three years to fund a £400m investment in UK life sciences.
• Investment includes a new research and development centre in Cambridge.
• Move more than 1,000 scientists to new site on Cambridge biomedical campus.
• Close R&D site in Stevenage, Hertfordshire by 2029.
• Upgrade R&D laboratories at nearby Ware and move some employees there.
• Intend to launch 20 phase 3 trials – double the number announced earlier this year.

Cambridge site details

• 300,000-sq ft (28,000 sq metre) site being developed by warehouse builder Prologis.
• Located on one of the largest biomedical campuses in Europe.
• More than 22,000 people working in life sciences and more than 470 biopharma, biotech and AI companies based there.
• More than a million patients treated there each year.
• Will feature state-of-the-art, tech-enabled labs to support research in oncology, respiratory, hepatology, vaccines and HIV.
• Bring scientists to the UK’s “golden triangle” – Cambridge, Oxford and London – with access to “world-class ecosystem of biomedical research, patient care and academia”.

Job cuts and cost savings

• Company declined to share number of redundancies globally.
• Three-year cost savings programme targeting £1.9bn in annual savings by 2029.
• About 45% of planned savings from cutting support services, better procurement and simplifying processes.
• A further 40% of targeted savings from moving resources away from established treatments to focus on new drugs.

Leadership and strategy context

• Chief executive Luke Miels (previously chief commercial officer) began review of drug pipeline after taking over from Emma Walmsley at start of year.
• Aim: develop competitive new medicines more quickly.
• Company headquartered in London.
• Investment welcomed by Andy Burnham as “vote of confidence in British business”.
• Prime minister described it as “a boost for homegrown innovation and expertise” and step towards more people getting access to new medicines and treatments.

Previous investments and market context

• Stevenage site closure comes five years after GSK announced plans to spend £400m extending its campus.
• Rival AstraZeneca recently made surprise U-turn, announcing £300m investment in UK, including £200m expansion in Cambridge, after pausing large-scale projects in 2025.
• Shares in GSK rose by 6% after announcement, among biggest risers on London stock market.