Haleon, the world's biggest standalone consumer health business, is planning to cut hundreds of roles in the UK and potentially thousands worldwide, the Guardian reported on Thursday.
The company behind the Sensodyne toothpaste and Advil painkillers was spun off from GSK last year and has more than 24,000 staff globally.
Redundancies
Staff were informed about the redundancies this week in a series of meetings and a consultation process, which started on Wednesday, would close on Aug. 25, the report said.
Those who are laid off are expected to leave Haleon in September, according to the report.
Haleon did not immediately respond to Reuters' request for a comment.
Squeezed Margins
Last May, Haleon reported quarterly profit below expectations, citing higher costs that squeezed margins.
The company said it generated adjusted earnings per share of 4.2 pence on revenue of nearly £3 billion (€3.4 billion)
That compared with analyst expectations for quarterly profit of 5.24 pence per share profit on revenue of about £2.9 billion (€3.29 billion), Refinitiv data showed.
Reported revenue for the period was 13.7% higher, or +9.9% on an organic basis, driven by price of +7.1% and positive volume/mix of +2.8%.
Consumer Healthcare Business
Commenting on Haleon's performance, Russ Mould of AJ Bell said, “Consumer health firm and recent GSK spin-off Haleon came under pressure as earnings missed expectations amid a squeeze on margins."
Sensodyne maker Haleon was formed in July 2019 with the merger of GSK and Pfizer's consumer healthcare businesses. It was spun out and listed on the London Stock Exchange in July 2022.
Shares
Also in May, GSK sold 240 million shares in its consumer healthcare business Haleon at 335 pence per share, raising about £804 million (€1.15 billion), the company said.
Haleon, the world's biggest standalone consumer health company, comprising assets from GSK and Pfizer, sells non-prescription drugs, vitamins and oral care products.
