Pfizer Plans to Lay Off 500 Employees at its Sandwich Site in the UK

According to a report from FirstWordPHARMA, Pfizer is planning to lay off 500 employees at its manufacturing site in Sandwich, Kent, UK.

This round of layoffs is part of Pfizer's global cost-cutting plan announced last month, which includes a $9 billion reduction in revenue expectations for 2023. The company stated that cost reduction activities will be implemented globally.

As part of the plan, Pfizer will be closing its small molecule pharmaceutical (PSSM) business located at Discovery Park, where most of the affected employees are involved in research activities. Alongside the reduction in research positions, administrative positions within the PSSM department will also be reduced. Reports suggest that these positions will be transferred to other PSSM sites in Chennai, India, and Connecticut, USA. The layoffs in Kent are aimed at consolidating PSSM business capabilities and aligning them with investment priorities.

Decline in COVID-19 Product Performance

A Pfizer spokesperson stated that the company is undergoing reforms across various areas of its global enterprise to improve operational efficiency and effectiveness. They added that these reforms will be implemented in a phased manner, with variations across different areas.

In 2022, Pfizer achieved total revenue of $100.3 billion, becoming the first pharmaceutical company to surpass $100 billion in annual revenue. However, much of this success was driven by the backdrop of the COVID-19 pandemic. Pfizer's COVID-19 antiviral drug, Paxlovid, was initially touted as a "miracle drug" against the virus and its price skyrocketed. The original price of $2,300 per box surged to an astonishing $15,000 per box during the early stages of the pandemic. However, demand for the drug has significantly declined since then.

On October 31st, Pfizer released its third-quarter 2023 financial report, which showed a 42% year-on-year decline in revenue to $44.247 billion and a 79% decrease in net profit to $5.488 billion. In the third quarter alone, Pfizer's revenue was $13.232 billion, a 42% decrease compared to the same period last year. Net profit shifted from a profit of $8.608 billion in the same period last year to a loss of $2.382 billion.

This marked Pfizer's first quarterly loss since 2019, primarily due to the decline in sales of COVID-19 vaccines and drugs. The COVID-19 vaccines generated $1.31 billion in sales in the third quarter, a 70% decrease compared to the previous year. Similarly, the revenue from the COVID-19 drug Paxlovid was only $202 million in the third quarter, a 97% decline. These two products contributed $12 billion in revenue to Pfizer in the third quarter of the previous year.

Addressing the significant shortfall in COVID-19 business, Pfizer implemented a global cost-cutting plan, with layoffs being one of the measures.

Layoffs Aimed at Cost Reduction and Efficiency Enhancement

Total Headcount Approaching 1,600

News of the layoffs at Pfizer first emerged on October 10th, with reports indicating layoffs at the company's research facility in Boulder, Colorado. Permanent layoffs are set to begin on December 4th.

According to reports on October 27th, Pfizer announced in an email statement that it would be closing its Kit Creek facility and Durham Clinical Manufacturing facility in North Carolina. The company stated that these closures are part of Pfizer's previously announced cost-adjustment plan. Pfizer will continue to operate its largest facilities in North Carolina, including two in Sanford and one in Rocky Mount.

On October 30th, according to the Worker Adjustment and Retraining Notification (WARN) issued by the state of New Jersey, Pfizer plans to lay off 791 employees in Gladstone, New Jersey, with the plan set to take effect in February 2024.

On November 3rd, Pfizer conducted another round of layoffs at its COVID-19 drug and vaccine facility in Michigan, resulting in the layoff of 200 employees.

On November 8th, the Irish Times reported that Pfizer plans to lay off 100 employees at its Newbridge facility in Ireland.

Based on incomplete statistics, the total number of Pfizer layoffs now approaches 1,600 employees.