GSK announces $2.5 billion annual cost-cutting plan to offset upcoming patent cliff

GSK disclosed in its latest quarterly earnings that it will launch a three-year restructuring aimed at saving about £1.9 billion ($2.5 billion) each year.

The plan is intended to cushion the impact of a coming patent cliff that will affect its HIV drug portfolio, and it will involve simplifying the organization and reallocating capital toward specialty medicines.

GSK said job cuts will be part of the effort, though it has not revealed the number of positions. The company also plans to create new roles focused on priority research projects.

Additional savings are expected from increased use of AI, streamlining of supply chains and support services, and the closure of an R&D site in Stevenage.

Details will be communicated to employees before any public announcement, according to a GSK spokesperson.