Pfizer to Slash 200 Jobs in Major Restructuring, Targets Cost Efficiency

In a comprehensive cost-cutting plan, Pfizer intends to eliminate more than 200 positions in Switzerland, according to a report by Bloomberg News on 11 December that cited people with knowledge of the situation. By the end of 2025, the pharmaceutical company plans to reduce its personnel in Switzerland from about 300 to about 70 workers, which will be one of its biggest reorganisations in the nation in recent memory.

It is anticipated that the layoffs will occur this year. The reductions come after Pfizer's Swiss operations underwent a leadership transition this month, with Rea Lal taking Sabine Bruckner's place. According to Bloomberg, as the corporation streamlines reporting lines and consolidates tasks, the role's scope has been decreased.

Pfizer Focusing on $7 Bn Target by 2027

As the market for Covid-related medicines cools and post-pandemic demand declines, Pfizer aims to save US$7 billion by 2027. Pfizer was "streamlining and realigning" its resources to increase efficiency, according to a company spokeswoman, although they would not confirm the exact number of layoffs. According to analysts, a wave of job losses in the pharmaceutical industry has been caused by Switzerland's new corporate tax policy, which has decreased the market's appeal to global corporations.

In November, Novartis declared that it would reorganise its global presence and expedite automation by eliminating up to 550 Swiss positions. Pfizer shares increased 0.57% to US$25.48 in noon trading on Wednesday, up from US$25.33 at the previous close, despite the upcoming layoffs. As revenue from the pandemic era declines and regulatory environments change, the most recent reorganisation highlights the demand on multinational pharmaceutical companies to reset their cost bases. Investors will be keeping an eye on whether Pfizer's cuts maintain its Swiss capabilities while providing the operational lift it desires.

Pfizer Secures $10 Billion Metsera Acquisition

In a $10 billion agreement, Pfizer Inc. has agreed to buy Metsera Inc., a weight-loss medication firm. This purchase comes after a heated bidding war with Novo Nordisk A/S, a rival pharmaceutical business. According to Bloomberg, this disclosure places Pfizer in a strong position to win the startup's bidding fight with Novo Nordisk, even though the deal is not yet formally concluded.

Late on November 7, Metsera revealed that Pfizer's offer includes a payment of up to $86.25 per share, which includes an initial cash payment of $65.60 per share. Additional payments of up to $20.65 per share may also be made under the terms of the agreement, provided that specific milestones are met. According to a statement from the firm, Metsera's board decided that the latest Pfizer bid was the best deal for shareholders.