Benzinga - by Vandana Singh, Benzinga Editor.
Pfizer Inc (NYSE: PFE) is reportedly discontinuing its pharmaceutical sciences small molecule (PSSM) operations at Sandwich in Kent to streamline operations and enhance efficiency.
The decision will result in significant job cuts, with plans to eliminate 500 out of 940 positions.
Citing Pfizer spokesperson, Sky News highlighted that the announcement comes within the context of Pfizer's company-wide cost-cutting measures, driven by lower-than-expected sales of its COVID-19 vaccines and treatments.
Primarily, scientist roles are expected to be affected by the job cuts, although administrative positions within the PSSM unit will also be impacted.
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The company intends to shift these roles to other PSSM sites in Chennai, India, and Connecticut, US, where ongoing projects will be transitioned.
Pfizer clarified that the discontinued operation in Sandwich primarily focused on manufacturing tablets and some intravenous drugs, not vaccines or COVID-19 treatments like Paxlovid.
Sky News noted that most of the staff were surprised at the announcement and noted that while job cuts were expected, they thought 20%-30% of the unit could be culled rather than the entire PSSM operation in Sandwich.
"More information around this global program will be shared over the coming months and as part of the full-year guidance for 2024," the report added, citing Pfizer.
In Q3, The company reported a 42% slump in Q3 sales to $13.23 billion, down from $22.64 billion a year ago. The expected decline in COVID-19 product revenue, including Paxlovid and Comirnaty, drove a 41% operational decrease in Q3 revenues.
Price Action: PFE shares are up 1.76% at $29.49 on the last check Tuesday.
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