GlaxoSmithKline is planning to cut 850 research and development jobs in Britain and the US, in a bid to improve productivity.

The move is in addition to 350 job cuts announced by the world’s second biggest drugmaker in June.

“Following a recent review of business operations, we have started consultation on proposals which could impact 850 roles within R&D in the UK and the US,” a spokeswoman said.

In July, GlaxoSmithKline said it would divide its research and development, which is in seven centres, into smaller groups of up to 80 scientists. The groups will have to apply for funding to a central investment board.

At the time Andrew Witty, chief executive, expressed concern for the state of the pharmaceuticals industry. He said: “I can't help but see that the sector has lower ratings by shareholders and that anxiety exists about where the sector is going.”

GSK hopes that its new approach will lead to more drugs that earn a modest amount being developed by the company, reducing the risk of relying on a few big sellers.

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