Latest Round Of Layoffs Hit Pfizer, Pharmaceutical Company To Close Multiple Facilities

Pharmaceutical giant Pfizer announced nearly 800 workers in New Jersey will be impacted by its plan to close its Somerset County facility.

BREAKING: Pfizer to Lay Off 781 Workers in New Jersey – WSJ pic.twitter.com/oODx4OFWzH

— Insider Paper (@TheInsiderPaper) November 6, 2023

A substantial decrease in COVID-19 profits has forced Pfizer to make numerous cost-cutting decisions.

“Following prior rounds of cuts in Illinois and Colorado, Pfizer is downsizing in New Jersey, according to a Worker Adjustment and Retraining Notification (WARN) alert from the Garden State,” Fierce Pharma reports.

From Fierce Pharma:

The disclosure comes as a result of Pfizer’s plan to close its Peapack, NJ, facility in early 2024, a company spokesperson said over email. While the WARN listing shows that 791 positions are affected, the “vast majority” of workers will be reassigned to Pfizer’s New York Headquarters, the company’s spokesperson said.

Another “small portion” of impacted workers will go to the company’s Parsippany, NJ, site, the spokesperson added.

The cuts in New Jersey are expected to go into effect in February 2024, according to the local WARN notice.

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During the transition period, the company does not have final figures on job losses.

Earlier this month, Pfizer said it would launch an “enterprise-wide cost realignment program” after slashing its 2023 revenue projection by $9 billion. Of the $3.5 billion in planned cuts by the end of next year, Pfizer hopes to realize $1 billion in savings in 2023.

The outlet noted that Pfizer has laid off workers or shuttered facilities in Colorado, Illinois, and North Carolina.

The News & Observer reports that Pfizer will close two of its North Carolina Triangle facilities as part of a “$3.5 billion cost-saving initiative.”

North Carolina’s “Research Triangle” is the state’s metropolitan area anchored by three major research universities (Duke University, North Carolina State University, and the University of North Carolina at Chapel Hill).

“The sites are the company’s Research Triangle Park office near Morrisville and its clinical manufacturing facility just outside the Park in Durham,” The News & Observer wrote.

“The Durham closure comes only two years after Pfizer opened that site as part of $66 million investment by the company. The 85,000-square-foot facility focused on gene therapy treatments.

On Oct. 13, Pfizer announced it would undergo a multiyear plan to save $3.5 billion,… pic.twitter.com/HtzNpwje1L

— Chief Nerd (@TheChiefNerd) October 29, 2023

The News & Observer reports:

Pfizer did not disclose how many jobs will be impacted. In an email to The News & Observer that “All job-related decisions will be made with transparency, compassion, and respect, and in compliance with applicable laws.”

Under federal law, employers must file a WARN Notice 60 days ahead of closing a site that impacts at least 50 employees. Pfizer has not filed a notice of layoffs, according to the N.C. Department of Commerce website.

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The Durham closure comes only two years after Pfizer opened that site as part of $66 million investment by the company. The 85,000-square-foot facility focused on gene therapy treatments. This site was expected to add 50 jobs and relocate around 40 workers from Chapel Hill.

On Oct. 13, Pfizer announced it would undergo a multiyear plan to save $3.5 billion, including $1 billion by the end of this year. The company also lowered its yearly revenue forecast due to lower-than-expected sales of its COVID-19 vaccine. Last year, Pfizer reported record revenue fueled by coronavirus vaccine sales.

Pfizer, one of the Triangle’s largest employers, to close two facilities in NC https://t.co/4iXuAVhnVH

— The News & Observer (@newsobserver) October 27, 2023

Pfizer stated:

In addition, in the fourth quarter of 2023, Pfizer announced that the company has launched a multi-year, enterprise-wide cost realignment program that will realign its costs with its longer-term revenue expectations. The program is expected to deliver targeted savings of at least $3.5 billion, of which $1.0 billion is expected to be realized in 2023 and an additional $2.5 billion is expected to be realized in 2024. The one-time costs to achieve the savings associated with the new cost realignment program are expected to be approximately $3.0 billion, of which the majority is expected to be cash. These costs will primarily include severance and implementation costs. Pfizer will continue to refine the estimated targeted savings and their associated costs over the remainder of the year and will incorporate them into its full-year guidance for 2024.