Pharmaceutical giant Pfizer (NYSE:PFE) announced on Tuesday that it plans to lay off 500 workers at its production plant in Sandwich, Kent, UK. This decision is part of a series of layoffs at various sites, aligning with the company’s $3.5 billion cost-cutting plan.
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Per the announcement, the affected workers, primarily scientists, will continue their roles at the factory until January 2024. A company spokesperson explained that these job cuts are integral to Pfizer’s strategy for enhancing efficiency and effectiveness. “These changes will be implemented on a rolling basis and will differ (from) area to area,” added the spokesperson.
In its latest earnings report, Pfizer reported a revenue decline, attributing it to reduced demand for its COVID-19 vaccines. Consequently, the pharmaceutical giant revised its full-year revenue forecast downwards.
In response to these shifts, Pfizer has initiated several layoffs and closed two facilities in Raleigh, North Carolina. Notably, the Kent plant, now facing cuts, was significantly invested in by Pfizer to expedite COVID-19 vaccine production.
Moreover, this revenue downturn has adversely affected Pfizer’s stock performance. The company’s shares have declined by 39.85% in value this year. However, there was a nearly 2% increase in stock price on Tuesday.
Is Pfizer a Buy, Hold, or Sell?
With four Buys and nine Holds, PFE has a Moderate Buy consensus rating on TipRanks. The average Pfizer price target of $36 implies a 22.08% upside potential from current levels.
