GSK Reports 23% Drop in Profit Amid Cost-Cutting Efforts

British pharmaceutical company GSK announced a 23% drop in its profit for the third quarter of the year. The profit fell to £1.5 billion (about $2.1 billion) from the same period last year, according to a company statement.

This decline is attributed to costs associated with restructuring as GSK aims to cut its spending. Despite this setback, the company maintained its revenue and profit forecasts for the entire year.

In July, GSK launched a three-year plan to save costs, focusing on simplifying operations and directing resources toward its late-stage drug development and research. The company has set a goal to save £1.9 billion annually by 2029, although it has not confirmed whether this will lead to job losses.

Recently, GSK indicated it might cut around 1,200 jobs at its Belgium subsidiary, which would affect about 15% of its workforce there. This decision comes as the company faces decreased global demand for vaccines.

Despite the profit drop, GSK’s revenue grew by 4% to £8.9 billion, driven by strong sales in its cancer, respiratory, and HIV medications. However, shares of the company fell about 5% in early trading on the London Stock Exchange.

Last year, GSK saw its annual profit more than double to £5.7 billion, highlighting the challenges it faces in maintaining growth.