Pfizer lays off hundreds at Michigan site, cites low demand for COVID products – MLive.com

PORTAGE, MI -- About 200 people have been laid off at Pfizers facility in Portage, the company confirmed.

The laid-off employees were notified on Thursday, Nov. 2, the company told MLive/Kalamazoo Gazette, citing a lower demand than what the company expected for its COVID-19 products.

Pfizer regularly evaluates its manufacturing network to ensure capacity is effectively utilized based on product demands, Pfizer media contact Steven Danehy told MLive/Kalamazoo Gazette.

Considering the lower-than-expected utilization for our COVID-19 products Comirnaty and Paxlovid Pfizer launched an enterprise-wide cost realignment program to support future revenue expectations, Danehy said.

Comirnaty is Pfizers vaccine to prevent COVID-19 in people 12 and older.

Paxlovid is an oral COVID-19 drug that can be used by people 12 and older with mild to moderate illness who are considered high risk of severe illness.

The reduced demand for the two products resulted in the layoffs, the company said.

The company announced this week it recorded third-quarter 2023 revenues of $13.2 billion. Thats a 41% operational decrease, thanks to major declines in Comirnaty and Paxlovid sales.

The financial report mentions an expected decline in Paxlovid and Comirnaty revenues. Their 2023 projections are as follows:

Excluding COVID-19 products, Pfizer is expecting 6% to 8% operational revenue growth for the year, the report says.

Pfizer does not take these changes lightly, Danehy said in a company statement about the layoffs. All decisions that impact people, processes and initiatives will be made with transparency, compassion and respect. We also remain committed to our patients and will continue to produce the COVID-19 vaccine to meet demand.

Related: Gov. Whitmer urges President Biden to coordinate federal COVID-19 vaccination distribution with state

In February 2021, President Joe Biden toured Pfizers vaccine manufacturing facility in Portage at a time when the country was struggling to meet the high demand for COVID-19 vaccines.

In June 2022, Pfizer announced plans to invest another $120 million into the Portage manufacturing facility to expand production of Paxlovid. That expansion would create 250 new jobs, Pfizer said at the time.

In 2022, MLive reported the facility employed 3,000 people. The company did not immediately respond with an updated number.

MLive/Kalamazoo Gazette has reached out to the city of Portage seeking a comment.

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Pfizer lays off hundreds at Michigan site, cites low demand for COVID products - MLive.com