(Reuters) -U.S. drugmaker Pfizer launched a new multi-year program to cut its spending by about $1.5 billion by the end of 2027, complementing a $4 billion cost-cutting plan it announced last year.
The cost cuts are the company’s latest move to respond to declining demand for its COVID-19 products after delivering record sales in 2021 and 2022.
Shares of Pfizer rose 2.6% to $29.3 in afternoon trading.
The company said it would record one-time costs, primarily related to severance and implementation costs, of $1.7 billion as part of the new program. It expects to register the majority of charges this year.
The focus will be on “operational efficiencies, network structure changes and product portfolio improvements,” the company said.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Sriraj Kalluvila)
