Pfizer To Shut Down Two Facilities Amid Major Cost Cuts
Authored by Jack Phillips via The Epoch Times (emphasis ours),
Pharmaceutical giant Pfizer confirmed it will be closing down two of its facilities in North Carolina amid a cost-cutting initiative after it revealed that sales of its COVID-19 vaccine and other products would see a drop.
The company told multiple local media outlets that it would be closing its sites in Durham and Morrisville, saying the closures are part of an effort "to operate more efficiently and effectively."
"As part of this effort, Pfizer has decided to close the Kit Creek facility in Morrisville ... and the Durham Clinical Manufacturing Facility," the company said, according to the Triangle Business Journal. "Pfizer continues to operate its largest North Carolina facilities, including two in Sanford and one in Rocky Mount."
It's not clear how many workers would be impacted or laid off. The Epoch Times has contacted the company for comment Monday.
“All job-related decisions will be made with transparency, compassion, and respect, and in compliance with applicable laws," Pfizer told the News & Observer publication. And any employee who is impacted by the closures will be offered a "generous separation package," Pfizer told ABC11 TV, or will be given the chance to apply for another position.
Morrisville Mayor T.J. Cawley suggested that some workers might be laid off, according to the paper. Multiple Pfizer employees who had worked at the two North Carolina facilities listed the hashtag OpenToWork on their LinkedIn profiles in recent days.
“Overall, I think our area is pretty well buffered from the economic downtown,” the mayor said. “Talent will always move around from company to company. We have such a strong talent pool that companies will keep coming here.”
Before the closures were confirmed by the company, a number of unnamed Pfizer workers complained on social media that they would be getting laid off soon amid the company's cost-cutting scheme. Posts alleged that Pfizer officials held a live stream with thousands of workers to announce the cuts earlier in October.
Pfizer told Newsweek about a week ago that "we updated our plans last Friday in this release" and that "we are prepared to launch an enterprise-wide cost improvement program aligned with the longer-term revenue projections for our business. Details of this program will be shared over the coming months and as part of the full-year guidance for 2024." Other details were not provided.
Under federal regulations, employers have to file what's known as a WARN Notice 60 days before closing down a site that impacts at least 50 workers. As of Monday, Pfizer hasn't filed a WARN Notice regarding layoffs, according to the News & Observer, citing the state's Department of Commerce website.
Pfizer Lowers Guidance
About 12 million people, or around 3.6 percent of the population, have gotten one of the latest booster shots, said Dr. Mandy Cohen, director of the U.S. Centers for Disease Control and Prevention (CDC), last week.
“I think we’re on track. Would I love to see more? Of course, that’s my job as CDC director is to want more,” she told Politico.
Earlier this month, the drug giant released a report saying it would slash its profit and revenue estimates for a full year due to lower demand for COVID-19 products, including its mRNA vaccine and anti-viral drug Paxlovid.
It now expects 2023 sales of $58–61 billion, down from previous forecasts of $67–70 billion, said a report released Oct. 13. It's down "solely due to its COVID products," according to the report.
Sales of its COVID-19 vaccine will be about $2 billion lower than was previously forecast, the company said. It comes after the company's updated COVID-19 booster was made available by U.S. federal regulators in September, although uptake of the latest shot appears to be slow, according to federal health data.
At the same time, Pfizer reduced its guidance for Paxlovid, an antiviral drug that targets COVID-19, by approximately $7 billion.
"We remain proud that our scientific breakthroughs played a significant role in getting the global health crisis under control," Pfizer CEO Albert Bourla said in a statement Friday. "As we gain additional clarity around vaccination and treatment rates for COVID, we will be better able to estimate the appropriate level of supply to meet demand."
“We are in the middle of the COVID fatigue. Nobody wants to speak about COVID,” Mr. Bourla also said during a call earlier this month, according to CNBC. "We have the big anti-vaccination rhetoric."
Over the past month or so, Pfizer's stock has dropped about 10 percent, to just above $30 per share as of Monday morning. Rival pharma Moderna, which also produces an mRNA COVID-19 vaccine, has seen its stock drop by more than 29 percent over the past month, to $72 per share as of Monday.
Hospitalizations for COVID-19 consistently to drop over the past several weeks after rising somewhat during the summer, according to data posted weekly by the U.S. Centers for Disease Control and Prevention. Emergency room visits and case numbers have also dropped, the data show.
