Merck on Tuesday announced job and costs cuts that will result in $3 billion in savings by the end of 2027 to be fully reinvested to support new product launches and its drug pipeline across multiple therapeutic areas.
The Rahway-based drug maker said the cuts include $1.7 billion in annual savings from the elimination of certain administrative, sales and R&D positions. It also plans to reduce its global real estate footprint and optimize its manufacturing network.
In July 2025, as part of this initiative, the company approved a new restructuring program, in which it expects to eliminate certain administrative, sales and R&D positions.
Merck will, however, continue to hire employees into new roles across strategic growth areas of the business.
“Today, we announced a multiyear optimization initiative that will redirect investment and resources from more mature areas of our business to our burgeoning array of new growth drivers, further enable the transformation of our portfolio, and drive our next chapter of productive, innovation-driven growth. With these actions, I am confident that we are well positioned to generate near- and long-term value for our shareholders and, most importantly, deliver for our patients,” Robert Davis, chairman and chief executive officer said.
Additionally, the company will reduce its global real estate footprint and continue to optimize its manufacturing network.
Merch also said it is continuing to make long-term investments in its U.S. manufacturing and R&D capabilities. This includes the start of construction for a $1.0 billion, 470,000-square-foot state-of-the-art biologics center of excellence in Wilmington, Delaware, which will serve as a launch and commercial production facility and the primary U.S. manufacturing site for KEYTRUDA.
