An honest insider post, the REAL future at GSK…..

This from Cafepharma, my thanks to Truthman30 for the tip-off – the entire thread is here.
I have had access to executive level discussions regarding the GSK layoffs. I am posting this information from an anonymous “business center” computer location. I won’t say anymore, except that my credibility is legitimate.

I understand that rumor, speculation, and misinformation is running rampant right now through out the entire GSK organization. I feel that the lack of communication with our sales force regarding the true intentions of this company is regrettable. I personally know quite a few of the excellent employees of GSK that will be terminated.

I am dismayed that executive level management has so little regard for the employees welfare. Yes, I remember the Zantac Hawaii trips! This is why I am being honest with you.

GSK is planning a second round of layoffs that will occur immediately before second quarter earnings are announced in 2008. Projected sales forecasts for Avandia family over the next six months are dire.

The current layoff scenario has been structured to appease shareholders and Wall Street analysts.

The layoff in 2008 will be attibuted to the new management team. They hope to be given credit by the Street for taking decisive action in the face of declining revenue. This may shore up the stock price at that time.

So you ask, “Why not just lay every one off now?” There is a good answer. The GSK Senior Executives very closely studied the Pfizer layoff from last year. Do Executives from different companies talk with each other? Yes, they do. Pfizer management noted that after the layoff, a significant portion of the sales organization was demoralized. This resulted in many subsequent resignations as Pfizer sales people found new jobs on their own. This resulted in Pfizer not having to pay these people severance packages. The net: Pfizer saved a tremendous amount of money by having a layoff followed by enhanced attrition.

GSK is planning the same situation. This is why the current layoff in not as large as it really needs to be. Two smaller layoffs is more cost effective than one large one.

I have been honest with you. If you survive the current layoff, there is no guarantee you will survive the next one in June 2008. Plan for your future accordingly.

I realize on Cafe Pharma some people will bash this information as false. However, you might be surprised how many people in VERY senior management read this board. They need to know that some managers still care about the employees. The point is, do what is best for you and your family.

I have to admit, it is sad to see what has happened to this once great company. I really hope GSK can recover, but nothing is guaranteed. Best of luck to all of you.


3 Responses to “An honest insider post, the REAL future at GSK…..”

  1. ron Says:

    when yous bos is depressed hill now what to take the rest of his live.

  2. polly Says:

    Right on! You have spoken the truth and we applaud you for it. Managers with proven track records were laid off; while managers with 1/2 their records stayed…no sense to this. GSK (as you state) unfortunately, is not the company it once was; and your predictions about the future sadly are correct. I wish it were not so; but I thank you for being honest. GSK should wake up to their errors now and try to be loyal to the employees who have given their loyalty for many yrs.

  3. truthman30 Says:

    “GSK should wake up to their errors now and try to be loyal to the employees who have given their loyalty for many yrs”

    Unfortunately Polly, GSK has no loyalty to anything..
    It is an inhuman company, obviously run by people with no regard for human life, never mind the job security of employees…
    It sounds like you work for them, or have worked for them possibly?..
    If so you would be aware of their behaviour surrounding Paxil(Seroxat), Avandia etc…
    If you are so pissed off with them, maybe you should speak out? Tell your story to the media maybe?
    Or even better set up a blog?
    I’m sure it would be very popular..
    There’s a lot of people out there who are very interested in GSK related issues..
    Of course they are mostly people whose lives have been destroyed from GSK’s defective drugs…
    But i’m sure it would be a hit anyhow..

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