Months after beginning a $4 billion savings strategy, Pfizer is planning on a new $1.5 billion round of cost cuts, as well as what are likely to be more reductions in the future.
The cuts include shrinking the company’s manufacturing base, a Pfizer spokesperson said, a portion of Pfizer’s business which grew substantially during the Covid-19 pandemic. “This program will focus on streamlining our ways of working, reducing complexity, and increasing productivity in Pfizer Global Supply,” the spokesperson said.
In a securities filing, Pfizer called the savings plan a “multi-phased effort” that “will span multiple years, and is expected to include operational efficiencies, network structure changes, and product portfolio enhancements.”
The spokesperson confirmed that the $1.5 billion in annual savings is for a first round of the program, and that more cuts are likely.
Pfizer, whose business boomed during Covid-19, has been rolling out what is now a series of cost reductions as it readjusts its business and grapples with a stock price $PFE that has fallen substantially from its pandemic-era peak. Last October, it announced a $3.5 billion cost reduction program, and then expanded it to $4 billion at the end of the year.