Key Takeaways
- Merck layoffs 2025: The company plans to cut approximately 6,000 jobs globally as part of a restructuring initiative targeting $3 billion in annual cost savings by 2027, the company confirmed in a statement to FirstWord Pharma.
- Keytruda patent expiration impact: The workforce reduction comes amid concerns over the looming loss of exclusivity for Merck’s top-selling cancer drug, Keytruda, which generated $8 billion in Q2 sales.
- Pharma industry layoffs trend: Merck joins Moderna, Bristol Myers Squibb, and Novartis in announcing major layoffs this year as pharmaceutical companies adjust to shifting market demands and patent cliffs.
Merck has announced plans to cut approximately 6,000 jobs globally as part of a broader cost-saving initiative aimed at reducing annual expenses by $3 billion by the end of 2027. According to the company, the restructuring, which was disclosed during the company’s second-quarter earnings report, will mainly affect administrative, sales, and R&D roles, and is expected to save around $1.7 billion. The company’s efforts to save money are being driven by growing concerns over the upcoming loss of patent protection for its top-selling cancer therapy, Keytruda (pembrolizumab).1
Can Merck Maintain its Oncology Momentum While Slashing 6,000 Jobs?
In a statement to FirstWord Pharma, a spokesperson for Merck confirmed the scale of the layoffs, stating that "overall investments in our company and headcount will increase over the coming few years."
Q2 Financials Underscore the Shift
The company first revealed the cost-saving measures earlier this week as part of its Q2 2025 earnings report. Merck reported Q2 2025 revenues of $15.8 billion, down 2% year over year, primarily due to declines in vaccines and immunology products, including a 55% drop in Gardasil sales. However, Keytruda remained a growth driver, generating $8 billion in quarterly sales—a 9% increase—fueled by broader use in earlier-stage cancers.
GAAP EPS declined 18% to $1.76, while non-GAAP EPS dropped 7% to $2.13, impacted by higher R&D and restructuring costs. R&D expenses rose 16%, reflecting increased clinical activity, headcount costs, and a $200 million upfront payment to Hengrui Pharma. Merck’s non-GAAP gross margin improved to 82.2%, aided by favorable product mix. Moving forward, the company anticipates sales between $64.3 billion and $65.3 billion.2
Layoffs Part of an Industry-Wide Pattern
Merck’s sweeping layoff announcement lands amid a wave of pharma workforce cuts, with Moderna becoming the latest to unveil a major restructuring plan aimed at trimming 10% of its global headcount and operating with less than 5,000 employees by year-end.
Moderna CEO Stéphane Bancel stated that the move was a “difficult but necessary” decision to align the company’s cost structure with the evolving demands of its business. The layoffs were announced as a result of the company’s Q1 earnings, which demonstrated a revenue of $108 million, marking a year-over-year drop due to lower COVID-19 vaccine uptake and the cyclical patterns of its respiratory portfolio.3
