Merck & Co. Targets $3B in Cost Savings Through Restructuring, Including Job Cuts

Merck & Co. has launched a multiyear cost-cutting and restructuring initiative aiming for $3 billion in annual savings by the end of 202713.

The program includes workforce reductions across administrative, sales, and R&D roles, as well as streamlining global real estate and manufacturing operations1.

The company recorded $649 million in restructuring charges for Q2 2025 and expects cumulative pretax costs of about $3 billion for the program13.

Annual cost savings of approximately $1.7 billion from the restructuring are expected to be substantially realized by the end of 2027, contributing to the total $3 billion target3.

The restructuring comes amid a 2% revenue decline to $15.8 billion and a significant (55%) drop in Gardasil sales, contributing to recent stock price pressure1.

Despite restructuring and job cuts, Merck continues to invest in manufacturing and R&D, including construction of a $1 billion biologics center and expansion of animal health manufacturing in the U.S.3.

Sources:

1. https://www.ainvest.com/news/merck-strategic-cost-cutting-implications-long-term-shareholder-2507/

3. https://www.merck.com/news/merck-co-inc-rahway-n-j-usa-announces-second-quarter-2025-financial-results/