Merck plans to cut three billion dollars in costs by 2027 to support new drug launches and strengthen its pipeline. The restructuring involves job cuts, reducing manufacturing facilities, and downsizing real estate. These measures aim to offset the impact of patent expirations, particularly the 2028 expiration of Keytruda, and new tariffs. Despite revenue slightly missing forecasts, adjusted earnings beat expectations. The company expects significant annual savings and is adjusting its strategic focus amid industry challenges.