Reported 6 months ago
Pfizer has launched a new cost-cutting program aiming to reduce expenses by $1.5 billion by 2027, building on a previous $4 billion plan announced last year. This initiative comes after a decline in investor confidence due to decreased pandemic concerns and a drop in COVID-19 vaccine and treatment sales. The company's shares rose 2.6% following the announcement, but are still down 24% from last year. Pfizer plans to incur one-time charges of $1.7 billion for severance and implementation costs related to the program, with cash outlays expected in 2025 and 2026. The focus will be on operational efficiencies, network structure changes, and product portfolio enhancements. Job cuts associated with the program have not been announced yet, with further details expected to be revealed in future earnings calls and investor events.
Source: YAHOO