The outside of Pfizer’s main office building is pictured on January 29, 2023, in New York City.Â
Photo by Kena Betancur | Corbis News | Getty Images
Pfizer disclosed on Wednesday that it has initiated a new long-term plan to decrease expenses as it aims to recover from the swift drop in its Covid-related business.Â
This comes on top of a previously announced $4 billion cost-reduction plan, which Pfizer revealed last year when the demand for its Covid vaccine and Paxlovid oral drug declined.Â
In a securities document, the leading pharmaceutical firm stated that the initial phase of its new plan will concentrate on improving operational efficiency and is anticipated to save approximately $1.5 billion by the end of 2027. The one-off expenses associated with the initial round of cuts are estimated to be around $1.7 billion, including severance pay for a number of employees who will be let go. The majority of these charges are anticipated to be recorded this year.Â
Moreover, Pfizer plans for the program to include “restructuring of network” and “enhancements to product portfolio.”
“Due to the intricacy in manufacturing and the extended lead times necessary for adjustments, this initiative will be carried out in several phases,” Pfizer noted in the document.Â
More updates will follow as the story unfolds.
