In an announcement made by Pfizer, the U.S. pharmaceutical company, a new scheme spanning several years was launched to bring down its expenses by approximately $1.5 billion by 2027. This is in addition to a cost reduction plan of $4 billion announced last year.
This move to slash costs is Pfizer’s latest response to the falling demand for its COVID-19 products that previously drove record revenues in 2021 and 2022.
During afternoon trading, Pfizer’s shares appreciated by 2.6%, reaching $29.3.
Pfizer disclosed that the new scheme will lead to one-time charges, primarily due to severance and implementation costs, amounting to $1.7 billion. The company anticipates that the majority of these charges will be recorded within this year.
Pfizer stated that the focal point of the scheme would be “operational efficiencies, network structure changes, and product portfolio enhancements”.
(Written by Bhanvi Satija in Bengaluru; Edited by Sriraj Kalluvila)
