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PORTAGE, MI – About two hundred more people were laid off at Pfizer’s Portage facility, the company confirmed.
The laid-off workers were notified on Thursday, Nov. 2, the company told MLive/Kalamazoo Gazette, leading to lower-than-expected demand for its COVID-19 products.
“Pfizer evaluates its production network to make sure capacity is being used successfully based on product demand,” Steven Danehy, Pfizer’s media contact, told MLive/Kalamazoo Gazette.
“Given the lower-than-expected use of our COVID-19 products (Comirnaty and Paxlovid), Pfizer has initiated a company-wide charge realignment program to align long-term earnings expectations,” Danehy said.
Comirnaty is Pfizer’s vaccine to protect against COVID-19 in people 12 and older.
Paxlovid is an oral COVID-19 medication that can be used in people 12 years of age and older who have mild to moderate illness and are at higher risk for severe illness.
Falling demand for either has led to layoffs, the company said.
The company announced this week that it reported profit of $13. 2 billion in the third quarter of 2023. This represents a 41% operational drop, driven by declines in sales of Comirnaty and Paxlovid.
The monetary report cites an “expected decline” in Paxlovid and Comirnaty’s revenues. Their projections for 2023 are as follows:
Excluding COVID-19 products, Pfizer expects a 6% to 8% expansion in operating profit for the year, according to the report.
“Pfizer does not take those adjustments lightly,” Danehy said in a corporate statement about the layoffs. “All decisions that have an effect on people, processes, and projects 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 vaccine distribution with the state
In February 2021, President Joe Biden visited Pfizer’s vaccine production facility in Portage at a time when the country was struggling to meet the main demand for COVID-19 vaccines.
President Joe Biden talks about the coronavirus vaccine after visiting Pfizer’s global plant in Portage, Michigan, Friday, Feb. 19, 2021. (Malachi Barrett) Joel Bissell | MLive. comJoel Bissell | MLive. com
In June 2022, Pfizer announced plans to invest another $120 million in Portage’s production facility to expand production of Paxlovid. The expansion would create 250 new jobs, Pfizer said at the time.
In 2022, MLive reported that the facility hired 3,000 people. The company did not immediately respond with an updated number.
MLive/Kalamazoo Gazette has reached out to the City of Portage for comment.