GlaxoSmithKline plc (ADR) (NYSE:GSK) just made a much awaited announcement outlining that it would soon sell off its Horlicks drinks brand in the U.K. It goes without saying that this move hasn’t been received well by some people, especially the 320 employees that will lose their jobs as a result.
The provider has added that it took its board members quite a long time to arrive at the decision to sell off its antibiotics business at Ulverston. This unit has over the years engaged in the manufacturer of Fortum, Zinnat, and Zinacef.
A number of moves have been undertaken by the top provider and some top analysts have indicated that they may impact the company negatively. Selling off the MaxiNutrition brand and outsourcing of some of the pharmaceutical manufacturing from GSK’s Worthing site located in West Sussex are some of these moves.
GSK firmly defends its stand citing that it had absolutely nothing to do with the decision by the UK to exit EU. It added that its motivation came from the fact that it would be able to improve competitiveness as well as build on efficiency of its diverse manufacturing network according to Yahoo.
The expansion at Ulverston was something lot of the concerned parties looked forward to. It would be a great move considering that it would lead to the creation of more job opportunities. Some close sources to the company revealed that the workforce was going to be increased from about 300 to 500.
While speaking to some top news reporters, one of the company’s top executives said, “We have got the space to expand and we have got the technical skills here which we think are the hub of what we need to start up the new facility. It will be major investment that will create many highly skilled jobs and provide a huge boost to the area.”