GlaxoSmithKline under pressure to reduce costs

The Irish division of multinational drug maker GlaxoSmithKline (GSK) is facing ‘‘major economic difficulties’’ and is coming under mounting pressure from its US owner to reduce overheads and strip down costs.

The pharmaceutical giant employs more than 1,600 people in Ireland and has plants in Dublin, Cork and Waterford. However, the Irish division has said it is under ‘‘significant pressure’’ from its parent company to reduce costs in order ‘‘to ensure the plant’s competitiveness and sustainability’’.

According to new company disclosures, the firm is ‘‘operating in a highly competitive sector and i s facing major economic difficulties’’.