GlaxoSmithKline revealed plans to implement substantial workforce reductions as part of a broader £1.9bn cost-reduction initiative designed to fund a £400m investment in UK life sciences infrastructure over three years. The pharmaceuticals company intends to relocate more than 1,000 scientists to a new research and development facility on Cambridge’s biomedical campus, while phasing out its existing R&D operations in Stevenage by 2029. The company will simultaneously upgrade facilities at its Ware location and transition select employees there.
The new Cambridge site, spanning 300,000 square feet and developed by logistics provider Prologis, will be situated on one of Europe’s largest biomedical campuses. The facility will incorporate advanced, technology-enabled laboratories focused on research into oncology, respiratory disease, hepatology, vaccines, and HIV treatments. Cambridge’s biomedical ecosystem currently hosts over 22,000 life sciences workers and more than 470 companies operating in biopharma, biotech, and artificial intelligence sectors, with annual patient treatment numbers exceeding one million.
Chief Executive Luke Miels, who assumed leadership earlier this year following a review of the company’s drug pipeline, emphasized that the investment would enhance research capabilities and accelerate product development. The relocation strengthens GSK’s presence in the UK’s established research hub encompassing Cambridge, Oxford, and London, providing access to world-class biomedical research infrastructure and academic institutions. Under Miels’ leadership, GSK plans to initiate 20 phase 3 clinical trials—double the number previously announced—representing a strategic shift toward more rapid competitive drug development.
The cost-reduction programme targets £1.9bn in annual savings by 2029, with approximately 45% derived from streamlining support services, improving procurement efficiency, and process simplification. The remaining 40% of targeted savings will come from reallocating resources away from established treatments toward new drug candidates. The company declined to disclose total redundancy numbers across its global operations. GSK’s stock price increased by 6% following the announcement, among the strongest performers on the London stock exchange that day.
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