US-based pharmaceutical leader Merck & Co has revealed a major cost-reduction strategy intended to lower annual expenditures by $3 billion by 2027. This initiative includes the elimination of roughly 6,000 positions, representing approximately 8% of its worldwide workforce. Although specific information regarding which areas will experience job losses has not been shared, the firm has indicated that the cuts will impact administrative, sales, and R&D roles, with an emphasis on shrinking its global real estate presence. This action comes as Merck foresees biosimilar competition for its top-selling cancer antibody, Keytruda, starting in 2028.
In a comparable effort, Moderna, recognized for its mRNA vaccines, is aiming to reduce around 500 jobs, which amounts to 10% of its workforce, as part of its initiative to save $1.5 billion annually by 2027. Moderna’s CEO Stéphane Bancel emphasized endeavors to streamline R&D, renegotiate supplier agreements, and lower manufacturing expenses, acknowledging that workforce reductions are an essential component of this approach.
These revelations from Merck and Moderna are indicative of a wider trend of cost-cutting across the global pharmaceutical sector. Previously, Teva commenced the reduction of over 2,000 jobs in May. Furthermore, significant firms like Bayer, Novartis, and Bristol Myers Squibb are actively implementing their reorganization plans. These actions reflect ongoing adaptations within the industry to enhance efficiency and sustain competitiveness in the face of shifting market dynamics.