Merck has notified state authorities that it will reduce headcount by about 150 employees across its North Carolina manufacturing site that produces the human papillomavirus vaccine Gardasil. The job eliminations are scheduled to take effect in May, according to the company notice filed this week.
In trading following the announcement, Merck shares rose about 3% in afternoon sessions.
Gardasil has been a major contributor to Merck's revenue growth after its cancer immunotherapy Keytruda, with much of the vaccine's recent international expansion coming from China. The company paused shipments of Gardasil to China last year, citing weak demand, an action that helped drive a 39% decline in the vaccine's global sales in 2025.
The human papillomavirus vaccine protects against infections that can lead to cervical, vulvar, vaginal and anal cancers. In the United States, public health guidance was revised last month to recommend a single HPV vaccine dose for children, replacing the previously recommended two- or three-shot regimen for the approved schedules. Gardasil remains the only HPV vaccine licensed in the country.
Merck's leadership indicated last month that Gardasil is no longer serving as a primary growth driver for the company. Addressing operational adjustments, a company spokesperson said on Friday that the firm "continuously assess[es] our operations and evolving business needs and adjust[s] as needed to ensure the effectiveness of our manufacturing network in delivering reliable, compliant supply of our medicines and vaccines."
The upcoming reductions will affect the North Carolina facility beginning in May. Separately, Merck reported having roughly 30,000 employees across the United States, including Puerto Rico, as of December 31, 2025 in regulatory filings.
Context and implications
The workforce adjustment reflects softer demand for Gardasil both domestically and overseas and follows shifts in immunization policy and the company's own strategic reassessment of product-level growth contributions. The move is operational in nature, described by the company as part of ongoing reviews of manufacturing effectiveness and supply reliability.