U.S. pharmaceutical titan Merck & Co. has initiated the next phase of its ongoing corporate reorganization, cutting 88 positions at its global headquarters in Rahway, New Jersey. The workforce reduction is tied to a comprehensive $3 billion cost-saving strategy originally telegraphed by the company last July. According to a Worker Adjustment and Retraining Notification (WARN) Act filing submitted to state regulators, the affected job cuts are scheduled to take effect this September.
The structural configurations, global downscaling metrics, and competitive market headwinds facing Merck & Co. include:
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Objectives of the Strategic Capital Realignment: Merck’s multiyear optimization plan aims to achieve $3 billion in cumulative savings by the end of 2027. CEO Rob Davis and corporate leadership clarified that these realized savings will be “fully reinvested” to fund fast-growing business sectors and support upcoming product launches, systematically reallocating capital away from slower-growth therapeutic areas.
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Macro-Scale Workforce and Real Estate Reorganization: A company spokesperson confirmed that the global restructuring is projected to impact approximately 6,000 positions worldwide, representing roughly 8% of Merck’s aggregate global headcount. Alongside structural workforce trimmings, the drugmaker plans to optimize its worldwide manufacturing infrastructure by aligning its geographical footprint closer to end customers while parallelly reducing its global real estate exposure.
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Sustained Operational Commitments in New Jersey: Despite the localized staff reductions, Merck emphasized its long-term commitment to the state, where it continues to employ more than 8,000 workers. Additionally, the multinational enterprise has funneled nearly $3 billion into its New Jersey operations since 2018 to manufacture high-value medicines and vaccines.
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Impending Keytruda Patent Cliff as a Catalyst: The pipeline reallocation comes as Merck prepares for the loss of exclusivity for its megablockbuster oncology drug, Keytruda, with cheaper biosimilar versions poised to enter the U.S. market in 2028. Keytruda pulled in $31.7 billion in 2025, accounting for nearly half of Merck’s $65 billion in total corporate revenue. To further protect its financial sheet amid softening global demand, Merck previously cut 147 manufacturing roles in February at a dedicated vaccine facility in North Carolina tied to its Gardasil pipeline.
This contraction reflects a broader operational trend across the New Jersey biopharma corridor. At the end of May, Johnson & Johnson announced the termination of 56 employees at its New Brunswick headquarters following the divestiture of its orthopedics business. Concurrently, Novartis mapped out 76 job cuts targeting its Biomedical Research unit in East Hanover, while BioMarin eliminated 58 roles at the Princeton offices of its newly acquired subsidiary, Amicus Therapeutics.
Source: https://www.fiercepharma.com/pharma/merck-shrinks-headcount-88-nj-3b-cost-cutting-scheme-rolls