Merck to Lay Off 150 Workers at US Gardasil Plant Amid Sales Weakness

Merck & Co., one of the world’s leading pharmaceutical companies, announced it will lay off approximately 150 employees at its North Carolina vaccine manufacturing site, a decision linked directly to a significant slump in global demand for its human papillomavirus (HPV) vaccine, Gardasil. The facility produces Gardasil, a vaccine designed to protect against HPV strains that can lead to cervical, vulvar, vaginal, and anal cancers, and has been a major revenue contributor after the success of Merck’s blockbuster cancer immunotherapy, Keytruda. 

According to regulatory filings and notices submitted in the state’s database, the layoffs are expected to take effect in May 2026 and apply to employees involved in the production of Gardasil. Merck cited declining sales of Gardasil—down about 39% globally in 2025—as a primary factor in the workforce reduction, with especially weak demand in China after the company halted shipments to that market. Domestic changes have also played a role: the United States updated its immunization schedule to recommend a single HPV vaccine dose rather than the previously recommended two- or three-shot regimen. Gardasil remains the only HPV vaccine licensed in the U.S. under the updated guidance. 

Gardasil’s diminished role in Merck’s growth trajectory underscores broader pressures on the vaccine market. Even after its initial blockbuster performance, it has struggled to maintain global demand levels in the face of changing immunization practices and competition in certain regions. Management has acknowledged that Gardasil is no longer one of the company’s key growth drivers, a notable shift after years of reliance on the vaccine as part of the infectious disease portfolio. 

Despite the layoffs, Merck’s overall employment footprint in the United States remains considerable; as of December 31, 2025, the company reported approximately 30,000 U.S.-based employees, including those in Puerto Rico. A company spokesperson told Reuters that the workforce reduction reflects ongoing operational assessments aimed at ensuring the effectiveness and reliability of Merck’s manufacturing network, rather than a broader contraction of vaccine manufacturing capacity. 

Interestingly, Merck’s stock price reacted positively to the news, with shares rising around 3% in afternoon trading following the announcement—an indication that investors may view the move as a prudent cost-control measure in light of broader revenue pressures. 

The layoffs at the North Carolina facility represent the latest adjustment as the company navigates the evolving landscape of vaccine demand and competitive pressures. Merck’s broader strategic shifts have included separating its oncology and non-cancer product businesses, part of a larger reorganization to address future revenue challenges, including the anticipated 2028 U.S. patent expiration for Keytruda. In that restructuring, Gardasil along with other vaccines and non-cancer products are slated to be managed in a dedicated unit focused on specialty and infectious disease products. 

The move to reduce headcount at the Gardasil manufacturing site signals the challenges faced by major legacy vaccines in adapting to changing global demand patterns while balancing manufacturing efficiency and cost discipline. As global immunization policies and market dynamics continue to shift, companies like Merck are adjusting operations accordingly to sustain competitiveness in a complex pharmaceutical environment.