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Pfizer announces new cost cutting program

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Exterior view of the Pfizer headquarters building on January 29, 2023 in New York City. 

Kena Betancur | Corbis News | Getty Images

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Pfizer on Wednesday said it has launched a new multi-year program to reduce costs as it works to rebound from the rapid decline of its Covid business. 

The announcement is in addition to another $4 billion cost-cutting effort, which Pfizer announced last year as demand for its Covid vaccine and oral drug Paxlovid slumped. 

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In a securities filing, the pharmaceutical giant said the first phase of its new program is focused on operational efficiencies and is expected to save the company about $1.5 billion by the end of 2027. One-time costs related to the initial stage of cuts are expected to be about $1.7 billion, including severance for an unspecified number of laid off employees. The company expects to record the majority of those charges this year. 

Pfizer also expects the program to involve “network structure changes” and “product portfolio enhancements.”

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“Given the complexity in manufacturing and longer lead times required to make changes, this program will be a multi-phased effort,” Pfizer said in the filing. 

This story is developing. Please check back for updates.

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