(Reuters) -U.S. drugmaker Pfizer launched a new multi-year program to reduce its expenses by about $1.5 billion by the end of 2027, adding on to a $4 billion cost cutting plan it announced last year.

The cost cuts are the latest move by the company to respond to slumping demand for its COVID-19 products after they powered it to report record revenues in 2021 and 2022.

Pfizer’s shares were up 2.6% at $29.3 in afternoon trading.

The company said it would record one-time charges, mainly related to severance and implementation costs, of $1.7 billion as part of the new program. It expects to record a majority of the charges this year.

The focus will be on “operational efficiencies, network structure changes, and product portfolio enhancements,” the company said.

(Reporting by Bhanvi Satija in Bengaluru; Editing by Sriraj Kalluvila)