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

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.

 

I appreciate the post. I think most realize this already.

 

Thanks for the honesty. We don't seem to be getting much of that lately.

 

So you are saying to NOT act demoralized, and hope that we end up costing GSK a little more money than they originally anticipated when we get let go in the 2nd round of layoffs. I can deal with that...Just not sure for how long...

This is exactly what I was thinking would happen.

 

Thanks for the info...I would much rather hear the truth than have sunshine blown up my behind.


I hope management reads this.... why did you let regions, rvp's, dsm's, keep hiring when you knew this was coming??!! We have too many people on my team, all hired in 2007...good people who probably turned down other offers for the chance to work for gsk. Such a shame...so many people and families in turmoil right now. You should be losing more sleep than we are. Instead you are looking forward to your trip to Panama next year.

 

Using multiple layoffs to keep overall layoff costs down is absolutely an effective and jaded way to lower costs, with the bonus of multiple layoff bumps from Wall Street.

I am sure that many people will bail if they make it past the first cut. I also anticipate a more zealous PIP/sample audit/expense audit strategy going forward to both weed out 'undesirables' and encourage voluntary departures.

From a personnel standpoint, this strategy will backfire just as it did with Pfizer. There are still many great reps with Pfizer, but most of the ones I know who have stayed are tenured and don't want to walk away from their retirement package or they are too lazy to look for something new. The good Pfizer reps who had 3-6 years experience have all left or are interviewing.

GSK will end up weeding out the reps it does not want to lose. The high performers are the most employable and they know it. If the BS becomes too much, the goals too high and the environment too hostile, the good reps will leave. Just like Pfizer, the reps who stay will be the ones who stay because they are close to retirement or they can not find anything else.

 

I loved working for this company before they started running everything in the field from marketing. The truth is, no one works for a company for 25 years and gets the gold watch anymore. There is only one person in corporate america looking out for you... it aint uncle G. So, look for what's best for yourself and move on. I hope to be layed off in a few weeks but my sales results have been strong so I doubt it will happen. I'll leave on my own anyway.

 

What a class act to be upfront as you have. I used to bleed orange, now I am happy to have left such a disgrace for a company. Please tell me is it the European Ownership or is it the arrogance of leaders such as Viebacher that encourages such a low class approach to business?

 

O/P-thanks for the honesty!!

 

Gotta be real or this is a very creative writer. Thanks for the info. Sounds more and more plausible the more information I gather.

 

I am planning as if the end is near. Thank you for a much needed dose of reality.

 

Thanks for the honest information! I was worried that the layoffs would happen over several rounds, as they did at my previous place of employment.

 

To the OP: I appreciate you taking the time to post this information. I take everything on Cafe Pharma with a grain of salt, but the scenario you paint seems very realistic.

I hate to do exactly what GSK upper management wants me to do, but if I survive the first cut you can bet I am looking. At this point, I almost hope I get the package.

I think working for GSK next year will be absolutely miserable!

 

fake!

-Redneck Larry

 

Though I truly appreciate the honesty of the OP, it is clear that he/she works for GSK. We all know that GSK loathes those who waste time on cafe pharma. I believe that the OP was "encouraged" to place such a post on this site so that most of us will shit our pants and run, which I am planning on doing anyway. Afterall, OP clearly states that GSK is hoping to lose more reps due to attrition vs. severence/future layoffs. If OP's intent was truly out of care and consideration, I apologize. It's difficult to trust anyone that has access to "executive" meetings given the way this is all going down. Burn and turn.

 

I must agree with your comments.

 

The ones who don't believe this need a dose of reality. I had friends telling me this ws going to happen for months, all the while my DM denied layoffs. Believe it or not, there are people who know what is going on and do care about the people this affects and will speak up. I hate to tell you, but I got more honest info in advance (everything came true) on this website than from GSK. Believe what you want, but don't say you weren't warned.

 

I agree. Usually you can count on the stuff that is written here.

 

No, usually you can't, smartass. But I have a feeling I know the OP of this from way back, and it sounds like it's accurate, considering how smarmy GSK has become.

 

We all knew this day was going to happen, don't act surprised or hate GSK for it.