Merck plans to restructure its manufacturing and supply network that will result in the closure of facilities and a workforce reduction, the details of which have not been disclosed.

The restructuring is expected to be completed by the end of 2023 with estimated costs between $800 million and $1.2 billion, and charges of approximately $500 million this year. About half of these costs will relate to the closure of facilities and employee severance. 

Merck is investing in biologics manufacturing and is in the process of closing several older facilities. Merck is building a new biologics plant at its Swords site near Dublin to manufacture Keytruda, which is expected to open by 2021.

In October 2018, the company announced plans to invest $122 billion in new projects through 2022 to increase manufacturing capacity across its key businesses.

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