Merck Layoffs and Restructuring: What US Workers Need to Know

Merck & Co., one of the world’s largest pharmaceutical companies, just announced a sweeping $3 billion cost-cutting initiative that includes layoffs, real estate reductions, and internal restructuring. This comes alongside declining earnings, paused vaccine shipments to China, and increasing reliance on a single drug.

But behind the headlines is a more troubling story for American workers—who may be at risk of losing their jobs without clarity, notice, or protection.

What Happened?

On July 30, 2025, Merck announced:

A plan to cut $3 billion in annual costs by 2027
Immediate layoffs across administrative, sales, and R&D roles
A reduction in its global real estate and operational footprint
A continued freeze on Gardasil shipments to China, which caused a 55% drop in vaccine revenue
Revised 2025 earnings guidance and an increased dependency on cancer drug Keytruda

Though Merck posted $2.13 EPS (non-GAAP)—slightly beating Wall Street expectations—overall revenue declined for the first time in four years, signaling deeper operational and demand issues.

Are Merck Workers in the U.S. Affected?

While Merck has not publicly named which states or facilities will face layoffs, its footprint spans across:

New Jersey (HQ & research)
Pennsylvania (manufacturing and R&D)
North Carolina, Iowa, Nebraska, Virginia, California, and more

Notably:

163 workers were already laid off in Riverside, PA, in a separate facility closure announced earlier this year.
Merck did not file WARN notices for layoffs connected to the current $3B initiative—yet. This raises serious concerns about transparency and potential violations of state and federal layoff notification laws.

California

Merck operates significant facilities in California, including manufacturing, R&D, and administrative centers—though the company has not publicly identified which of these might be affected by its current $3 billion cost-cutting initiative
No WARN notices filed in California so far: To date, Merck has not submitted any Worker Adjustment and Retraining Notification (WARN) notices in California related to the new restructuring plan. This absence is noteworthy because California labor law mandates 60‑day notice to employees, state agencies, and local elected officials prior to mass layoffs or site closures Employment Development Department.
In contrast, FDA‑mandated WARN filings have been made in other states—such as the Riverside, Pennsylvania facility where 163 workers were laid off—in relation to site closure plans already disclosed earlier this year

Worker Rights Under the WARN Act

The Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100+ employees to provide 60 days’ advance written notice of:

Mass layoffs (50+ employees at a single site)
Plant closures
Major workforce reductions

If Merck fails to provide this notice, affected employees may be entitled to back pay, benefits, and damages.

California’s WARN Act is even stricter, requiring notice when 75 or more employees are affected. States like New Jersey and New York also have enhanced protections.

What to Do If You’re a Merck Employee

If you’re employed by Merck or one of its subsidiaries and you’re worried about layoffs or have already been let go, here’s what you should do:

Request your termination paperwork in writing — including reason for separation, severance terms, and any releases you’re being asked to sign.
Do not sign a separation agreement without legal review. You may be waiving rights to sue or receive WARN-related compensation.
Track your timeline — when were you notified? Were others impacted? Did you receive 60 days’ notice?
Contact an employment attorney — you may have claims for wrongful termination, WARN Act violations, retaliation, or unpaid wages.

EFLL Insight: Corporate Strategy ≠ Worker Disposability

At Employees First Labor Law, we understand the real toll these restructuring programs take. Behind every “cost savings target” is a worker with rent, a family, and a future on the line.

Companies like Merck may argue that layoffs are “strategic,” but when jobs are slashed while executives keep raking in bonuses, workers have every right to question whether they’ve been treated fairly—and legally.