Merck & Co. is slashing $3 billion from its annual spending as it braces for off-brand competition to its cancer drug Keytruda, the best-selling medicine in the world.

Drug maker Merck announced Tuesday it will embark on an initiative to cut $3 billion in costs 2027, including an undisclosed amount of layoffs. The global health care company, which has U.S. headquarters in Rahway, said savings from the cost-cutting measures will be used to support new products.

Merck will reduce its workforce by approximately 6,000 employees in “some areas of our global workforce,” the New Jersey drugmaker told Fierce Pharma. | Merck will reduce its workforce by approximately 6,