GSK’s restructuring efforts could save the company £350 million in 2008.

GlaxoSmithKline (GSK) is to write down £1.5 billion ($3.1 billion) for restructuring costs over the next four years, according to a report by the Financial Times.

The company attributes the requirement to intensifying generic drug competition and disappointing sales for its diabetes treatment, Avandia.

The restructuring is aimed at cutting costs by £350 million in 2008 and £700 million annually from 2010, the Financial Times said. GSK is expected to make factory closures and cut several thousand jobs in the coming months, making savings across its manufacturing, sales and administration, and research and development sectors.

By Natasha Piscitelli