GlaxoSmithKline operations in the Triangle are not the focus of an expanded cost-cutting program that Andrew Witty, the drug giant’s chief executive officer, disclosed today in London.

Rather, Europe will bear the brunt of reductions, a GSK (NYSE: GSK) spokesperson told WRAL News.

“The focus of this restructuring is Europe where it appears that difficult economic conditions will continue for the foreseeable future,” said Mary Ann Rhyne, director of U.S. media relations for GSK. “Andrew said we need to ‘right size’ for this environment.”

GSK employs some 4,500 people in North Carolina, Rhyne noted. The company maintains its North American headquarters in RTP.

Witty said GSK would cut costs $1.57 billion annually through 2016 with associated charges of another $2.3 billion.

The focus is on manufacturing as well as research and development in what Witty called a “change” program rather than a restructuring.

“Much of the change in R&D and manufacturing will not touch jobs at all,” Witty said. “It will look much more at our asset base and it will be much more around changing what that particularly manufacturing environment looks like over the next five or six years.”

Rhyne said GSK has already implemented numerous changes in the GSK. The company has refocused and rebuilt R&D teams, tightened its drug development focus. It also has over time made changes in its workforce at a production plant in Wendell. 

“In the U.S., we have made a number of changes over the past few years and feel we are in a good position to help deliver on the promise of our R&D pipeline and bring these new medicines to patients,” Rhyne said.

But the company also continues to review operations, she added.

“We are looking at opportunities to develop new technology in manufacturing and R&D which we believe will simplify supply chain processes, shorten production cycle times, decrease our carbon footprint and increase efficiency in clinical development,” Rhyne said, reflecting some of the comments Witty made in describing the “change” program.

“Those improvements could touch employees in the U.S. but our employees already are engaged in this work and it is less about jobs and more about how we work,” Ryne said. 

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