From CNBC: 2024-06-28 08:04:26

Pfizer’s CEO announced a strong first quarter performance that exceeded expectations, leading to a 6% rise in stock price. Last year, Pfizer faced a significant decline in its stock value due to reduced demand for Covid products. Employee morale is impacted by budget cuts and uncertainty despite a positive outlook.

The company embarked on a multibillion-dollar cost-cutting program to save $4 billion by year-end. Despite layoffs and reductions in expenses, Pfizer is striving to stabilize and regain Wall Street’s confidence. Employees express concerns over increased workloads, shifting strategies, and fears of further layoffs in certain divisions, causing low morale.

Pfizer faced challenges in 2023 as Covid vaccine demand decreased. The company forecasted a significant drop in revenue due to reduced booster shot numbers and lower usage of Paxlovid. The federal government returned unneeded Paxlovid courses, impacting sales. Pfizer slashed its 2023 sales guidance by $9 billion solely due to Covid products.

Following a challenging year, Pfizer announced cost cuts and initiatives for a fresh start in 2024. While investors responded positively, employees expressed dissatisfaction with the realignment of post-pandemic strategies. The company focused on renegotiating contracts, transitioning products to the commercial market, and boosting sales with new products despite setbacks in certain drug launches.



Read more at CNBC: Pfizer stock recovers after Covid decline but some employees struggle