Pfizer Announces $1.5 Billion Cost-Cutting Plan Amid Falling Vaccine Demand

The pharmaceutical giant's multi-year initiative follows a significant drop in COVID-19 vaccine sales and aims to enhance operational efficiencies.

Pfizer's COVID-19 vaccine sales plummeted 70% in 2023, driving the need for cost reductions.
The new program targets $1.5 billion in savings by 2027, focusing on operational efficiencies and product portfolio changes.
One-time costs of $1.7 billion, mainly for severance, will be incurred, with most charges recorded this year.
Pfizer had previously announced a separate $4 billion cost-cutting plan last year.
Other pharmaceutical companies, like Moderna and AstraZeneca, are also experiencing declining vaccine sales.