Merck to lay off around 150 employees at US site amid slump in Gardasil sales

Feb 27 (Reuters) – Merck will lay off about 150 employees across its facility in North Carolina that manufactures its human papillomavirus vaccine, Gardasil, according to a notice filed in the state’s database this week.

Shares of Merck were up 3% in afternoon trading.

Gardasil has been one of Merck’s top growth drivers after blockbuster cancer immunotherapy Keytruda, and much of its international growth has come from China. But the company halted shipments of the vaccine to China last year due to weak demand, driving a 39% slump in the shot’s global sales in 2025.

The vaccine protects against HPV infections that can lead to cervical, vulvar, vaginal and anal cancers.

The U.S. also overhauled its long-standing childhood immunization schedule last month to recommend a single HPV vaccine dose instead of the approved two- or three-shot regimen. Gardasil is the only HPV vaccine licensed in the country.

Merck’s management last month said Gardasil was no longer a key growth driver for the company.

“We continuously assess our operations and evolving business needs and adjust as needed to ensure the effectiveness of our manufacturing network in delivering reliable, compliant supply of our medicines and vaccines,” a company spokesperson told Reuters on Friday.

The layoffs will be effective in May, according to the notice.

As of December 31, 2025, the company had about 30,000 employees in the U.S., including Puerto Rico, according to a regulatory filing.  

(Reporting by Mariam Sunny in Bengaluru; Editing by Leroy Leo)