GSK planning shut down of Bangladesh unit
Global pharmaceutical giant GlaxoSmithKline (GSK) is looking to shut down its drug manufacturing operations in Bangladesh by the end of this year, a move strongly opposed by nearly a quarter of its local workforce.
For the past 50 days, almost 200 employees have been staging a sit-in on the factory premises in Chittagong to protest the decision, but GSK said it will still seek the shareholders’ approval next month to close what it describes as an unprofitable pharmaceuticals business in the country.
At least 800 employees stand to lose their jobs if the plant is closed. Its consumer healthcare business, which makes products such as Horlicks and Sensodyne, will continue to operate.
GSK has already finished negotiations with almost 600 employees about their severance packages, in the event of a closure. It has been reported that employees could be compensated as much as 70 months in compensation, upon their exit.