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.
All entries for: Merck
August 4, 2025
Merck
Layoffs
Rahway, NJ
10,001-50,000 employees
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
August 7, 2023
Merck
Negative Outlook
Rahway, NJ
10,001-50,000 employees
Disease Area: Oncology
Drug Type: Biologic, Small Molecule
May 5, 2023
Merck
Negative Outlook
Rahway, NJ
10,001-50,000 employees
Disease Area: Oncology
Drug Type: Biologic, Small Molecule
November 3, 2022
Merck
Negative Outlook
Rahway, NJ
10,001-50,000 employees
• IRA & 9-Month Period in 2022: “…the Company’s sales performance in the first nine months of 2022 was negatively affected by other cost-reduction measures taken by governments and other third parties to lower health care costs. In the U.S., Congress recently passed the Inflation Reduction Act, which makes significant changes to how drugs are covered and paid for under the Medicare” • General Impact: “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