The decline in demand for its COVID-19 treatments has prompted Pfizer to initiate a cost-reduction strategy across the company, which includes the elimination of nearly 200 positions in Michigan.
Pfizer is in the process of terminating approximately 200 roles at its facility in Kalamazoo, Michigan. This decision comes after evaluating the demand for its COVID-19 vaccine, Comirnaty, and the antiviral Paxlovid, as per a company spokesperson’s statement on Friday.
The reduction in workforce is attributed to “lower-than-expected utilization for COVID-19 products,” according to the company. “The company does not take these changes lightly,” said the Pfizer spokesperson, emphasizing the gravity of the situation.
The spokesperson assured that Pfizer is handling these changes with the utmost integrity and care, stating, āAll decisions that impact people, processes and initiatives will be made with transparency, compassion and respect.ā They reaffirmed Pfizerās dedication to fulfilling the needs of patients, maintaining the production of the COVID-19 vaccine to align with the demand.
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This downsizing is part of Pfizerās broader strategy to slash expenses, with a target to save $3.5 billion by the end of 2024.
Pfizer also recently adjusted its revenue forecast for 2023 downward by $9 million, citing a drop in the sales forecast for Paxlovid by $7 billion and a $2 billion reduction in expected revenue from the Comirnaty vaccine, which was co-developed with BioNTech.
In addition to these cutbacks, Pfizer has confirmed the upcoming closure of its Peapack, New Jersey, operation, scheduled for early 2024. From the approximately 791 roles impacted, the “vast majority” are expected to be transferred to Pfizerās New York headquarters, as communicated by a spokesperson earlier this week.
The cutbacks in Kalamazoo follow a significant investment of $750 million by Pfizer in late 2022 to enhance the site’s capabilities.
Also Read: As COVID Revenues Fall Short Of Expectations, Once-Flying Pfizer Considers Cost-Cutting Measures
The Kalamazoo location not only produces coronavirus vaccines but also manufactures Pfizer’s oral antiviral, Paxlovid. In the previous year, Pfizer had announced the creation of numerous “highly skilled” positions at this site, which is one of the corporationās most significant facilities.
Back in June 2022, Pfizer had announced an investment of $120 million in the Kalamazoo site, alongside plans to add 250 new jobs to increase the production capacity for Paxlovid.
