GlaxoSmithKline trimming US sales force by 1,000

The world's No. 2 drugmaker by revenue also will switch from having dual U.S. headquarters, in Philadelphia and in Research Triangle Park, N.C., to operating just the North Carolina headquarters.

U.S.-traded shares of GlaxoSmithKline fell $3.23, or 8 percent, to close at $36.96 Wednesday.

Spokeswoman Mary Anne Rhyne said Wednesday that the headquarters change is meant to eliminate confusion and is largely symbolic. There are currently no plans to cut jobs or close offices in Philadelphia related to the headquarters move, she said.

"The goal is to build a business that's more streamlined, that's more customer focused, that meets the challenge of the current marketplace and is better prepared to manage the future portfolio of medicines," Rhyne said.

GlaxoSmithKline, the maker of antidepressant Wellbutrin and Requip for Parkinson's disease and restless legs syndrome, currently has about 8,500 U.S. sales representatives, out of a total of 22,500 employees in the U.S. and 100,000 worldwide. It plans to cut about 1,800 sales rep positions, some currently vacant, but at the same time beef up its vaccine sales force. The company expects to end up with about 7,500 U.S. sales representatives, for a net loss of 1,000 jobs, according to Rhyne.

There also will be an unspecified number of jobs cut among sales support staff, which includes sales management and workers who track sales representatives' activities and provide them with supplies such as free samples and product brochures.

"If you reduce your field staff, you can reduce the number of staff required to serve them," Rhyne said.

Workers losing jobs are being told this week and will be out of work by the end of the year.

David Heupel, pharmaceuticals portfolio manager at Thrivent Large Cap Growth Fund, said GSK's move continues an industry trend to reduce expenses in areas from sales and marketing to supply purchases, manufacturing and even research and development. He said this right-sizing "is a healthy thing for the industry."