Pharmaceutical Industry Faces Wave of Layoffs and Restructuring Amid Shifting Market Dynamics

The pharmaceutical industry is experiencing a significant period of transition, with numerous companies announcing major layoffs and restructuring efforts in the latter half of 2025. These changes come as firms grapple with evolving market conditions, pipeline challenges, and the need to reallocate resources towards high-priority programs.

Widespread Layoffs Impact Thousands of Employees

Several major pharmaceutical companies have announced substantial workforce reductions in recent months. Novo Nordisk, a leader in diabetes and obesity treatments, revealed plans to cut approximately 9,000 positions globally, representing about 11% of its workforce. The Danish company aims to generate $1.25 billion in annualized savings through 2026 with these cuts.

Similarly, CSL, an Australian multinational, announced a 15% reduction in its global workforce, affecting around 4,350 employees. The company is also spinning off its vaccines business, CSL Seqirus, into an independent entity as part of a broader restructuring initiative.

Merck, another industry giant, projected potential layoffs affecting about 6,000 employees, or 8% of its global workforce, as part of a multiyear $3 billion cost-cutting effort. The company plans to reinvest these savings into research and development and to support the launch of up to 20 new products.

Other notable layoffs include:

• Sarepta Therapeutics: Cutting approximately 500 employees, or more than a third of its workforce
• Moderna: Reducing headcount by 10% globally, bringing total employees to under 5,000
• Rocket Pharmaceuticals: Laying off 30% of its workforce, affecting about 80 employees

Strategic Realignment and Pipeline Prioritization

Many companies are using these workforce reductions as an opportunity to refocus their efforts on high-priority programs and streamline operations. Adicet Bio, for instance, is laying off 30% of its staff while narrowing its pipeline focus to programs with the "highest potential for clinical and commercial success."

Similarly, 4D Molecular Therapeutics announced a 25% reduction in current and planned roles, primarily affecting early-stage R&D activities. The company aims to redirect resources towards late-stage execution, particularly its Phase III development of 4D-150 for wet age-related macular degeneration.

Bayer, amidst ongoing restructuring efforts, has seen its global headcount decrease by 7.3% over the past year. CEO Bill Anderson indicated that additional reductions are likely over the coming 18 months as the company continues to streamline its operations.

Impact on Research and Manufacturing Operations

The wave of layoffs and restructuring is having a significant impact on research and manufacturing operations across the industry. GSK, for example, is cutting 150 employees in Cambridge, Massachusetts, as it relocates manufacturing of its pneumococcal vaccine to Marietta, Pennsylvania. The company is also reducing its global R&D team, though it states this will affect only a "very limited" number of positions across its 12,000-person R&D workforce.

Genentech, a subsidiary of Roche, announced two rounds of layoffs at its South San Francisco headquarters this year, totaling 230 employees. The company cited the need to make "adjustments and decisions" regarding the makeup of its workforce to better address patient needs and deliver novel medicines.

As the pharmaceutical industry continues to navigate these challenging times, the focus remains on optimizing resources, accelerating innovation, and positioning companies for long-term success in an increasingly competitive market.