…290 staff to lose jobs
Over 50 years after its existence in Nigeria, GlaxoSmithKline Consumer Nigeria PLC has served notice of quitting operations in Nigeria with about 300 staff alleged to lose their jobs owing to the decision. The company announced its intent to cease operations in Nigeria in a memo dated August 3, 2023. The letter read in part: “Today we are briefing our employees whom we will treat fairly, respectfully and with care, meeting all applicable legal and consultation requirements. “The Board is conscious that shareholders will have many questions; we have been working assiduously with our professional advisors to agree on next steps and we will be shortly submitting to the Securities and Exchange Commission (“SEC”) a draft Scheme of Arrangement which may, if approved, see shareholders other than GSK UK, receive an accelerated cash distribution and return of capital.”

The multinational with a staff strength of over 290 in its 2021 Annual Report was incorporated in Nigeria on June 23, 1971 and commenced business on July 1, 1972, under the name Beecham Limited with its head quarters located at Industrial Avenue, Ilupeju, Lagos. In 1979, about 44 years ago, the company went public, listing at the Nigeria Stock Exchange. Below is the full text of the August 3, 2023 memo addressed to: Board of Directors GSK Consumer Nigeria plc, Lagos, Nigeria In our published Q2 results we disclosed that the GSK UK Group has informed GlaxoSmithKline Consumer Nigeria PLC of its strategic intent to cease commercialization of its prescription medicines and vaccines in Nigeria through the GSK local operating companies and transition to a third-party direct distribution model for its pharmaceutical products.
The Haleon Group has also separately informed the Board of its intent to terminate its distribution agreement in the coming months and to appoint a third-party distributor in Nigeria for the supply of its consumer healthcare products. For the above reasons, and having, together with GSK UK, evaluated various other options, the Board of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations. Today we are briefing our employees whom we will treat fairly, respectfully and with care, meeting all applicable legal and consultation requirements. The Board is conscious that shareholders will have many questions; we have been working assiduously with our professional advisors to agree on next steps and we will be shortly submitting to the Securities and Exchange Commission (“SEC”) a draft Scheme of Arrangement which may, if approved, see shareholders other than GSK UK, receive an accelerated cash distribution and return of capital.
The Board acknowledges the support of the GSK Group in its intentions to make this possible, full details of which we hope to publish shortly. In the meantime, however, we cannot give you assurance of the final terms of any scheme, or that any scheme will be approved by the SEC or by shareholders. Shareholders are advised to seek professional advice and continue to exercise caution when dealing in the company’s shares until a further announcement is made.