Merck & Co. has announced plans to reduce its workforce at its vaccine manufacturing facility in Durham, North Carolina. This decision comes as global demand for its HPV vaccine products (Gardasil and Gardasil 9) experiences a significant downturn.
Reasons and Scope of Reductions According to official filings, a total of 154 positions will be eliminated, with the layoffs scheduled to take effect on May 1, 2026. The primary driver is a drastic shift in international market dynamics, particularly in China—formerly a key growth market that has recently seen a sharp plunge in demand.
Market Context and Restructuring Strategy The commercial performance of the Gardasil franchise has faced substantial headwinds over the past year:
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Revenue Decline: Global sales of Gardasil fell by 39% to $5.2 billion in 2025.
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China Market Stagnation: Merck reported zero Gardasil sales in China for the fourth quarter of 2025 and has excluded future shipments to this region from its 2026 financial guidance.
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Infrastructure Shift: Notably, these cuts arrive just one year after Merck opened a new $1 billion production wing at the same site specifically dedicated to this vaccine.
Beyond specific vaccine hurdles, Merck is currently reorganizing its business into distinct divisions to optimize new launches and navigate the upcoming loss of exclusivity for other blockbuster treatments.