GSK forced to pay back £1.5m to Scottish Government after recent job cuts

British pharmaceutical giant GlaxoSmithKline has been ordered to pay back £1.5 million to the Scottish Government because of its failure to keep its promises of a planned expansion.

The firm was originally awarded a Scottish Enterprise Grant from the government to support a £70 million expansion of its plant in Irvine – a move which GSK said would create an additional 55 jobs at the facility. However, 22 months after the announcement, the extra positions never came to be.

Not only that, but last week the company confirmed that cutbacks at the facility will mean a loss of 55 positions, will voluntary redundancies reportedly not an option for employees. Eleven positions will be added as part of the restructure, meaning 44 jobs will be lost in total.

"As a result of global market changes impacting the project, we are unable to commit to the headcount requirements, which in part, were a condition attached to the grant," a GSK spokesperson commented. "Therefore, we have agreed with Scottish Enterprise to repay the instalments of the grant that we already qualified to receive.

"In addition, we have reviewed all work across GSK Irvine and are speaking with staff and their representatives on proposed changes that potentially impact a number of employees. The consultation covers a number of different roles at the site and does not specifically focus on the roles created as part of the expansion. We continue to consult and support employees who are affected by the proposed changes.

"GSK Irvine plays a vital role in GSK’s global medicines manufacturing network and we continue to look at opportunities that help increase the site’s capability."