Merck & Co. announced a multiyear cost-reduction program aiming to save $3 billion annually by the end of 2027. The initiative will redirect resources from mature products to newer launches and pipeline projects across multiple therapeutic areas, essential as Keytruda faces impending generic competition in 2028 and Gardasil revenue declines, particularly due to struggles in China and Japan. CEO Rob Davis emphasized the reinvestment of savings to support innovation and growth. The company plans workforce adjustments, including layoffs in administrative, sales, and R&D roles, while hiring in strategic growth segments and optimizing its global manufacturing footprint. Despite recent setbacks, Merck anticipates a turnaround and return to growth by late 2025.