Merck is preparing to cut about 150 jobs at its new vaccine plant in Durham, North Carolina, a move that ties a very local setback to a global drop in demand for its HPV blockbuster, Gardasil. The cuts hit roles tied to vaccine manufacturing at a facility that only opened last year as part of the company’s U.S. expansion in production.
A notice filed in the state’s database and reported by Reuters says Merck plans to lay off roughly 150 employees at the North Carolina site, with the reductions listed as effective in May. A company spokesperson told Reuters that Merck continuously reviews its operations and adjusts its manufacturing network when needed to ensure the "reliable, compliant supply" of its medicines and vaccines.
Why Gardasil's Slide Matters
Merck’s full-year 2025 results show that sales of Gardasil and Gardasil 9 fell about 39% year over year, taking out one of the drugmaker’s key growth engines. According to Merck, the decline stems from lower demand in China along with softer performance in other international markets.
Policy Shifts Add Extra Pressure
It is not just overseas markets weighing on Gardasil. In January, federal health officials updated the U.S. childhood vaccine schedule to recommend a single HPV dose instead of the previous two- or three-dose regimen. That change could trim demand for multi-dose HPV vaccines in the United States, according to STAT.
Durham's Billion-Dollar Bet Faces an Early Test
Merck unveiled its $1 billion, 225,000-square-foot vaccine production facility in Durham in March 2025, saying in a news release that the site was expected to support nearly 400 full-time roles and thousands of construction jobs. The planned job cuts now emerging at the site are an early test of that hefty investment and are likely to draw close attention from local economic leaders and workers.
Part of a Bigger Corporate Shake-Up
The Durham layoffs are unfolding within a broader restructuring Merck kicked off in 2025, which included plans to cut about 6,000 positions and capture around $3 billion in annual savings by 2027. FiercePharma reported that earlier job-cut plan, which Merck framed as a way to free up resources for growth areas such as oncology and new product launches.
Merck and state officials have not yet provided further detail on which roles at the Durham plant will be affected or what severance packages might look like. Workers and local leaders say they expect more clarity as the May effective date approaches. Hoodline will monitor filings and company statements for updates.
