US layoffs: This pharma firm to cut jobs amid $3 billion cost-reduction plan. Here's what we know
'The Company approved a new restructuring program, in which it expects to eliminate certain administrative, sales and R&D positions,' reported AFP, citing a company statement.
Merck also lowered its revenue forecast for 2025 slightly.
The company did not specify how many posts would be affected, but mentioned that it would continue to hire employees 'into new roles across strategic growth areas of the business.'
The plan involves Merck decreasing its "global real estate footprint" and further optimising its manufacturing network.
The announcement followed Washington's declaration on Sunday of a trade agreement with the European Union, which established a 15 per cent tariff on most EU imports into the US, including pharmaceuticals.
US President Donald Trump previously threatened a 200 per cent tariff on pharmaceuticals, and an investigation into these levies is currently underway.
Merck's revenue for the second quarter was $15.8 billion, a 2% decline year-on-year. However, it surpassed Factset's consensus expectations.
The company experienced a drop in sales of its HPV vaccine Gardasil.
The vaccine generated $1.1 billion in the second quarter, a 55% decrease year-on-year, due to waning demand in China and increased competition from generic drugs in international markets.
In contrast, sales of the cancer drug Keytruda, a major player in oncology, rose 9% to nearly $8 billion between April and the end of June.
Merck is cutting $3 billion from its annual budget in anticipation of off-brand competition to its top-selling cancer drug, Keytruda. The company announced that it intends to reinvest these savings into the development and launch of new medicines, reported Bloomberg.
The company has lost over 30% of its value in the past 12 months amid growing investor concern about its future after Keytruda.
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