GlaxoSmithKline (GSK) reported a decline in its fiscal 2008 fourth quarter net income, and confirmed that it plans to cut more jobs over the next two years.

The London-based company employs about 100,000 people globally, and has cut 10,000 jobs since the fourth quarter of 2007. However, it said it also added 1,300 positions and would continue to do so in some areas, such as oncology and vaccines. However, in an effort to cut another $2.5 billion off expenses by 2011, the company will likely have to trim approximately another 8,000 jobs, according to the Philadelphia Inquirer.

For the fourth quarter, GSK booked a net income of £6.91 billion ($10.1 billion, U.S.), representing a 7 percent decline.

For 2008, total pharmaceutical income fell 3 percent to £20.4 billion ($29.84 billion), driven largely by an 11 percent drop in the U.S. market to £8.9 billion ($13 billion), which was impacted by expected generic competition to several mature brands and further declines in Avandia sales. Sales in Asia Pacific fell 1 percent to £1.9 billion ($2.4 billion), "reflecting the impact of pharmaceutical price cuts in Japan," GSK said. These declines were partially offset by 3 percent growth in Europe to £6.5 billion ($9.5 billion) and a 12 percent increase in emerging markets to £2.3 billion ($3.36 billion).

The company highlighted is strong 2008 sales for Lovaza, a high triglyceride drug that was acquired from Reliant Pharmaceuticals in 2007, which experienced a 71 percent increase (on a pro-forma basis) to £290 million ($424 million)

Andrew Whitty, CEO of GSK, said, "2008 marked a turning point for GSK and those factors which impacted our performance, in particular declines in Avandia sales, are now starting to reduce. 2008 also saw the first steps towards a radical transformation of our business model."

GSK reported that it will cease providing an earnings-per-share (EPS) guidance, to allow a focus on longer term strategic goals. Reflecting on the 2008 fiscal year, Whitty said that "we started to make very clear what it would take to really make this company strong over the next few years and how we intend to ensure that we build a business, which can really prosper in a challenging environment."