Ex-GSK employees facing layoffs at Parexel

Discussion in 'GlaxoSmithKline' started by anonymous, Jul 29, 2015 at 12:16 PM.

Tags: Add Tags
  1. anonymous

    anonymous Guest

    By RICK SMITH, WRAL TechWire Editor

    TRESEARCH TRIANGLE PARK, N.C. —As many as 200 former GlaxoSmithKline employees who were transferred to life science services firm Parexel earlier this year are reportedly being laid off today. However, the Boston-based company which has a large presence in the Triangle, isn't talking.

    "In general, we do not discuss any employee-related matters to ensure the privacy for our employees and confidentiality for our clients," said Diana Martin, vice president of corporate communications for Parexel (Nasdaq:PRXL), via email.

    A month ago, Parexel said it was cutting 850 jobs but did not specify where the cuts would be made.

    Parexel provides a variety of services, such as the conduct of drug clinical trials. The GSK transfers at least temporarily doubled the size of Parexel's Triangle work force.

    In February, GSK (NYSE:GSK) said it planned to transfer several hundred Triangle workers to Parexel as part of a cost-cutting move. Some 900 jobs are being cut in the Triangle, including 450 workers shifted to Parexel under a negotiated agreement.

    However, on Wednesday morning, many of those workers who still are based at a GSK building in RTP began being called in for one-on-one meetings as the layoffs started.

    A former Parexel/GSK worker who recently left the firm for another job has remained in contact with former co-workers said coleagues had "confirmed" that "a couple hundred people do all have their 5 [minute] meetings in person today with Parexel [human resources] in the Sanders building where we have been working (on GSK's campus) to find out their futures."

    The reported cuts are the latest in a series that have hit GSK, Hospira, Salix and Merck as well as technology firms such as Lenovo and NetApp.

    Parexel Chairman and CEO Josef von Rickenbach announced the layoff plan during meetings with investors at the company's Boston headquarters in June, calling it a "Margin Acceleration Program."

    “As we finish Fiscal Year 2015 and look ahead to Fiscal Year 2016, we believe that we have good momentum, a strong and diversified backlog, and a healthy business development pipeline," Rickenbach said.

    "Our priorities for the new year include solid revenue growth, as well as improved operating profitability and double-digit growth in earnings per share. In conjunction with our new guidance we are also raising our long-term adjusted operating margin target from 12%-14% of service revenue to 13%-15% of service revenue. We are accelerating a number of our ongoing improvement plans, and as a result of these efforts, plan to restructure certain activities. We believe that this will strengthen the Company by increasing our competitiveness in the marketplace, and will help us to deliver long-term sustainable growth in revenue and margins.”

    Parexel said the job cuts would cost the company some $60 million once they were completed in July.


    Read more at http://wraltechwire.com/ex-gsk-employees-facing-layoffs-at-parexel-firm-won-t-comment-/14800573/#QrWFc38D7g5YoAlQ.99
     

  2. anonymous

    anonymous Guest

    Yep, my former colleagues were all laid off today, effective Sept 30.
     
  3. anonymous

    anonymous Guest

     
  4. anonymous

    anonymous Guest

    Refresh my memory, are the ex-GSK folks eligible for the GSK severance?

    Or are they completely at the mercy of Parexel's policies?

    I thought the ex GSK folks were assured GSK level of salary for a certain period of time at Parexel but I don't remember if they were assured a GSK severance if they were terminated by Parexel prior to a certain date.

    Either way, what a mess.
     
  5. anonymous

    anonymous Guest

    Yes, they would get the GSK severance package.
     
  6. anonymous

    anonymous Guest


    No severance. Only lunch w. andie.
     
  7. anonymous

    anonymous Guest

    Ball
     
  8. anonymous

    anonymous Guest

    funny gsk told the people they sold to PXL that they were being let go due to a reduction in workforce yet an email from a senior leader said they are rapidly recruiting 200 people in philly area.
    Incredible integrity.
     
  9. anonymous

    anonymous Guest

    That's not quote true. The reduction in workforce was a byproduct of getting R&D out of RTP. Not ALL of R&D was let go - a number of critical programs were being moved to Philly. ANd yes, there was disproportionate numbers of some folks in RTP which necessitate a backfill, now being located in Philly. However, the backfill for headcount is being filled at lower paygrades - making it impossible for displaced RTP staff to apply up there because now we'd be overqualified for the recently opened positions.

    Ex GSK PXL employees are protected via contract to receive the GSK Severance package for being let go from PXL prior to the end of two years. Apparently some higher ups at PXL didn't even know they were being (mostly) terminated. The whole thing is a complete mess.
     
  10. anonymous

    anonymous Guest

    But there are twice that number in pools, right?
     
  11. anonymous

    anonymous Guest

    And let's not forget how Patrick Vallance sweetened the cull of clinical ops and platforms with this white knight Parexel deal. Feh, mugs.
     
  12. anonymous

    anonymous Guest

    GSK outsourced it layoffs to Parexel.
    So poetic, so pathetic.
     
  13. anonymous

    anonymous Guest

    The PXL deal had 3 parts for GSK:
    1) allowed GSK to not officially have 900 laid off early this year
    2) by shipping many off to PXL for inferior jobs and lower annual income, they anticipated many would leave PXL voluntarily and PXL would keep some, thus GSK wouldn't have to give either of those 2 groups severance.
    3) GSK could still complete some studies as they would be otherwise severely understaffed in some groups

    I think #2 was the big reason (to avoid giving severance to as many as possible).
     
  14. anonymous

    anonymous Guest

    Remember
    [​IMG]