Biopharma Job Market Faces Significant Challenges Amid Industry-Wide Layoffs

The pharmaceutical and biotechnology sectors are grappling with a tightening job market, as recent data reveals a substantial decrease in job openings and a wave of layoffs across the industry. This trend is creating a highly competitive environment for job seekers, with far-reaching implications for the workforce and companies alike.

Job Postings Plummet as Applications Soar

According to recent data from BioSpace, August 2025 saw a dramatic 32% year-over-year drop in job postings within the biopharma sector. The number of live job postings on the BioSpace website hit a 2025 low of 6,385 in August, while job applications surged to 32,089, significantly outpacing available positions. This imbalance between job openings and applicants has been a consistent trend throughout the year, indicating a challenging landscape for those seeking employment in the industry.

The average number of live job postings on BioSpace has also declined, reaching its lowest point for 2025 at 2,903 in August. This downward trend has been observed year-over-year for each month, underscoring the persistent nature of the job market contraction.

Widespread Layoffs Exacerbate Job Market Woes

The competitive job market is further intensified by a series of significant layoffs across the biopharma sector. Through August 2025, BioSpace reports that 167 companies have either laid off or projected layoffs affecting approximately 26,600 employees. This figure excludes contract development and manufacturing organizations, contract research organizations, tools and services businesses, and medical device firms.

Notable layoffs and projections include:

• Novo Nordisk's announcement on September 10, 2025, of plans to cut about 9,000 employees globally, including around 5,000 in Denmark.
• Bayer's layoff of approximately 2,000 employees during the first quarter of 2025.
• Teva Pharmaceuticals' ongoing layoff of around 2,900 staff worldwide, set to continue through 2027.
• Merck's projection to let go of about 6,000 employees globally as part of a multi-year process.

The impact of these layoffs on biopharma professionals is significant. A recent BioSpace survey of 110 respondents revealed that while many felt being let go ultimately led to positive outcomes, 34% disagreed. Some respondents reported difficulties finding new employment, with one describing the job market as the slowest in 50 years.

Broader Economic Indicators Reflect Industry Challenges

The challenges in the biopharma job market are mirrored in broader economic indicators. The U.S. Bureau of Labor Statistics reports a downward revision of 158,000 jobs added in the professional and business services sector for the year ending in March 2025. Additionally, while the U.S. added 22,000 jobs in August, the professional and business services sector, which includes scientific services, lost 17,000 jobs.

The sector's unemployment rate remained unchanged at 4.2% in August, slightly below the overall U.S. rate of 4.3%. However, the number of long-term unemployed individuals in the U.S. has increased by 385,000 over the past year, accounting for 25.7% of all jobless individuals in August.

Economists from Wells Fargo have noted that these trends suggest the labor market has "hit stall speed," with widespread weakness across industries making a near-term recovery challenging.