Pfizer launches a new wave of cost cuts, expects $7.7B in total savings through 2027
Title
Pfizer Expands Cost-Cutting Program, Targets $7.7 Billion in Savings by 2027
Keywords
- Pfizer
- Cost-cutting
- Cost realignment program
- Savings target
- Pharmaceutical industry
- Digital transformation
- Automation
- R&D cuts
- Business optimization
- 2027 financial goals
Key Facts
- Pfizer has announced a significant expansion of its cost-cutting initiatives, aiming for total savings of $7.7 billion through 202712.
- The expanded program includes $1.7 billion in new planned reductions on top of previous cost-cutting efforts that began in 202325.
- Of the $7.7 billion, Pfizer expects to realize $4.5 billion in net cost savings by the end of 202513.
- The latest $1.2 billion in cuts focus primarily on selling, informational, and administrative functions, leveraging digital tools such as automation and artificial intelligence, as well as business process simplification1.
- Research and development (R&D) will also see $500 million in cuts by 2026, though Pfizer plans to reinvest those savings into its pipeline1.
- The cost-cutting initiative has seen multiple revisions since its October 2023 launch, each time raising the targeted savings as Pfizer continues to optimize its operations in response to changing market conditions12.
- Despite challenges such as declining Paxlovid sales, Pfizer is maintaining its 2025 profit outlook while executing these savings measures3.
Sources:
1. https://www.fiercepharma.com/pharma/pfizer-sweeping-cost-cutting-push-lifts-savings-target-77b
2. https://endpts.com/pfizer-plans-more-cost-cuts-expanding-total-savings-to-7-7b/
3. https://www.morningstar.com/news/marketwatch/20250429145/pfizer-sticks-to-2025-profit-view-as-it-shrugs-off-plunging-paxlovid-sales-for-covid