Merck is letting go of 204 employees from its Rahway, New Jersey location, continuing its aggressive layoff spree in recent months.
All entries for: Merck
November 5, 2025
Merck
Neutral Outlook
Rahway, NJ
10,001-50,000 employees
In 2022, the U.S. Congress passed the Inflation Reduction Act (IRA), which made significant changes to how drugs are covered and paid for under the Medicare program, including the creation of financial penalties for drugs whose prices rise faster than the rate of inflation, redesign of the Medicare Part D program to require manufacturers to bear more of the liability for certain drug benefits (which has taken effect in 2025), and government price-setting for certain Medicare Part D drugs (starting in 2026) and Medicare Part B drugs (starting in 2028).
Disease Area: Antiviral, Cardiology, Immune Diseases, Multiple, Neurological Diseases, Oncology
Drug Type: Biologic, Small Molecule
September 12, 2025
Merck
Layoffs
Rahway, NJ
10,001-50,000 employees
Merck will terminate research and discovery efforts in the U.K., a move that includes pulling out of the Francis Crick Institute and the London BioScience Innovation Center, which will leave 125 employees jobless. The pharma giant is also pulling the plug on a roughly $1.3 billion construction project that was expected to open 120 posts for researchers and technicians. A company spokesperson said the moves reflect “the challenges of the U.K. not making meaningful progress towards addressing the lack of investment in the life science industry.” Successive U.K. governments, the spokesperson continued, have also demonstrated an “overall undervaluation of innovative medicines and vaccines.”
Disease Area: Antiviral, Cardiology, Immune Diseases, Multiple, Neurological Diseases, Oncology
Drug Type: Biologic, Small Molecule
August 12, 2025
Merck
Layoffs
Rahway, NJ
10,001-50,000 employees
Merck will let go of 58 people at its Rahway, New Jersey, headquarters effective Nov. 14. The layoffs come after Merck confirmed it will execute $3 billion in cost cuts to support the launches of more than 20 products nearing the market. The move could affect roughly 6,000 employees during the multi-year move. Merck is paring back its workforce to help support the launches of 20 products nearing the market, according to a July 29 announcement. The cuts include eliminating administrative, sales and research and development roles.
Disease Area: Antiviral, Cardiology, Immune Diseases, Multiple, Neurological Diseases, Oncology
Drug Type: Biologic, Small Molecule
August 4, 2025
Merck
Layoffs
Rahway, NJ
10,001-50,000 employees
Merck projected it could let go of about 6,000 employees as part of a multiyear process, affecting around 8% of its global workforce, as part of its recently announced cost-cutting initiative.
Disease Area: Antiviral, Cardiology, Immune Diseases, Multiple, Neurological Diseases, Oncology
Drug Type: Biologic, Small Molecule
July 30, 2025
Merck
Layoffs
Rahway, NJ
10,001-50,000 employees
During the company’s second quarter earnings report, Merck CEO Rob Davis said that the company was undergoing a $3 billion cut in spending, spread across administrative, sales and research and development roles. The savings amount to about $1.7 billion annually, hoping to hit the $3 billion mark by 2027.
Disease Area: Antiviral, Cardiology, Immune Diseases, Multiple, Neurological Diseases, Oncology
Drug Type: Biologic, Small Molecule
May 2, 2025
Merck
Negative Outlook
Rahway, NJ
10,001-50,000 employees
Pursuant to the IRA’s Program, a government price was set for Januvia, which will become effective on January 1, 2026. In January 2025, the U.S. Department of HHS, through the CMS, announced that Janumet and Janumet XR would be in included in the second year of the IRA’s Program, with government price setting to become effective on January 1, 2027. The Company has sued the U.S. government regarding the IRA’s Program. Additionally, increased utilization of the 340B Federal Drug Discount Program and restrictions on the Company’s ability to identify inappropriate discounts are having a negative impact on Company performance. Furthermore, the Executive Branch and Congress continue to discuss legislation designed to control health care costs, including the cost of drugs. In several international markets, government-mandated pricing actions have reduced prices of generic and patented drugs. In addition, the Company’s sales performance in the first three months of 2025 was negatively affected by other cost-reduction measures taken by governments and other third parties to lower health care costs. The Company anticipates all of these actions and additional actions in the future will continue to negatively affect sales and profits.
Disease Area: Antiviral, Cardiology, Immune Diseases, Multiple, Neurological Diseases, Oncology
Drug Type: Biologic, Small Molecule
November 3, 2023
Merck
Negative Outlook
Rahway, NJ
10,001-50,000 employees
“Pursuant to the IRA’s Program, discussions with the government will occur in 2023 and 2024, with government price-setting becoming effective on January 1, 2026. The Company has sued the U.S. government regarding the IRA’s Program (see Note 10 to the condensed consolidated financial statements). Furthermore, the Biden Administration and
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Congress continue to discuss legislation designed to control health care costs, including the cost of drugs. The Company anticipates all of these actions and additional actions in the future will negatively affect sales and profits.”
Disease Area: Oncology
Drug Type: Biologic, Small Molecule