By Josh Beckerman

Pfizer is launching a multi-year cost reduction program expected to include operational efficiencies, network structure changes, and product portfolio enhancements.

The first phase is focused on operational efficiencies and is expected to deliver savings of about $1.5 billion by the end of 2027.

A securities filing Wednesday didn't state the number of expected job cuts, but the company said severance and implementation costs will be a large part of an expected $1.7 billion in one-time costs related to the first phase.

Last October, the company announced a cost realignment program expected to provide at least $3.5 billion of savings. In April, Bristol Myers Squibb said it will cut 2,200 jobs this year as part of an effort to save $1.5 billion by the end of 2025. Bayer has also been cutting jobs this year.

On May 1, Pfizer reported $14.9 billion in first-quarter sales, down 20% from a year ago, largely due to lower Covid-19 vaccine revenue. Sales for its non-Covid products rose 11% on a strong demand for drugs including blood thinner Eliquis and oncology products. Also in May, Pfizer said it hired Andrew Baum as next chief strategy and innovation officer.

Write to Josh Beckerman at

(END) Dow Jones Newswires

05-22-24 1341ET