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Pharma giant Bristol Myers Squibb is planning another round of cost cutting as part of a broader restructuring plan.

Under the “strategic productivity initiative” announced Feb. 6, the Lawrenceville-based company aims to slash $2 billion in costs by the end of 2027. The move comes less than a year after BMS unveiled an effort to save $1.5 billion via the layoff of some 2,200 employees.

“Under this expanded initiative, savings will be driven by changes in organizational design and efforts to enhance operational efficiency. These savings will be removed from our cost structure to contribute to a leaner, more efficient company while investing behind growth brands and promising areas of science,” the company said in an investor presentation.

In an interview with Endpoints News, BMS Chief Executive Officer Chris Boerner said the reductions will come in two categories. In addition to workforce cuts to contract positions, open roles and attrition, the company will examine operating costs, such as marketing spend on older drugs, clinical trials and supply chain items.

BMS did not say how many jobs the changes will impact.

Looking for long-term growth

During a Feb. 6 conference call, Boerner said BMS expects to achieve $1 billion of the savings this year and the remainder by the end of 2027.

“Throughout 2024, operational excellence and financial discipline were top priorities for us. [As] part of this effort, we reallocated significant spend towards high potential growth opportunities, achieving most of our targets $1.5 billion in savings. We expect to capture the remainder this year,” he said.

According to a filing with the New Jersey Department of Labor and Workforce Development, the company expects to eliminate 67 positions between April and December. It is unclear if the recently posted positions come as part of previously announced reductions with updated final dates of employment, or from a new round.

Over the past year, BMS has filed multiple WARN notices. Altogether, the moves have affected more than 1,300 workers in Lawrenceville. In addition to its corporate headquarters, BMS also has a 650,000-square-foot facility there that houses employees from the commercial and R&D teams.

In a statement to NJBIZ, Bristol Myers Squibb said, “As we have communicated over the last year, we are focused on strengthening the company’s long-term growth profile. We are optimizing operations across the company while prioritizing investments in innovative and transformational medicines where we can deliver the highest value for patients and shareholders.”