US-based Merck & Co has initiated a cost-cutting plan that will see around 6000 job cuts (about 8% of its global staff) as part of an effort to reduce annual costs by $3 billion (£2.2 billion) by the end of 2027. The company has not given details of which segments job losses would come from, or whether site closures are expected, although it did say cuts will be across administrative, sales and R&D positions, and that it aims to ‘reduce its global real estate footprint’. Merck faces impending biosimilar competition for its best-selling cancer antibody Keytruda (pembrolizumab), beginning in 2028.
Meanwhile, mRNA vaccine maker Moderna is cutting around 500 jobs (10% of its workforce) as part of a commitment to save $1.5 billion in annual costs by 2027. Chief executive Stéphane Bancel said the company has scaled down R&D, renegotiated supplier agreements, and reduced manufacturing costs, but some job losses remain necessary.
The cuts continue a cycle of cost-reduction in global pharmaceuticals. Teva began cutting over 2000 jobs in May, while Bayer, Novartis and Bristol Myers Squibb continue their ongoing reorganisation plans.
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