Pharmaceutical Industry Faces Major Restructuring as Q3 Layoffs Surge 280% Year-Over-Year

The pharmaceutical industry is experiencing a significant wave of restructuring, with major companies announcing substantial layoffs and organizational changes in the third quarter of 2025. According to recent data compiled by BioSpace, Q3 saw a staggering 280% year-over-year increase in layoffs, affecting over 23,000 employees across the sector.

Big Pharma Leads Massive Workforce Reductions

Three industry giants—Merck, CSL, and Novo Nordisk—are spearheading this trend, collectively accounting for approximately 19,350 job cuts. Merck announced plans to reduce its global workforce by about 6,000 employees, representing 8% of its staff, as part of a multiyear cost-cutting initiative aimed at saving $3 billion. The company intends to redirect these savings towards research and development efforts and support the launch of up to 20 new products.

CSL followed suit, revealing its intention to part ways with 15% of its workforce, potentially affecting around 4,350 employees. This restructuring effort is designed to streamline operations and enhance clinical and commercial performance, with expected annualized savings of $500 million to $550 million over the next three years.

Novo Nordisk made the most significant announcement, planning to cut about 9,000 jobs globally, which amounts to 11% of its total headcount. The Danish pharmaceutical company aims to simplify its business structure, improve decision-making speed, and generate approximately $1.25 billion in annualized savings through 2026. These savings will be redirected towards growth opportunities in diabetes and obesity treatments.

Regional Impact and Industry-Wide Trends

The layoffs have had a particularly pronounced effect on the biotech hubs of California and Massachusetts. These two states reported the highest number of companies implementing or projecting layoffs, with 14 in California and 16 in Massachusetts. The workforce reductions have affected multiple cities within these states, highlighting the widespread nature of the industry's restructuring efforts.

Other notable Q3 cuts came from Sarepta Therapeutics, Moderna, and Lundbeck. Sarepta announced layoffs affecting around 500 employees, while Moderna revealed plans to downsize by about 10%, impacting approximately 550 people. Lundbeck's decision to withdraw from 27 markets will affect 602 employees, although the company expects most of these individuals to have opportunities with local partners.

The trend of layoffs is expected to continue into the fourth quarter of 2025, albeit at a potentially slower pace. As of mid-October, six companies have already announced or projected cuts totaling around 1,000 employees, with Ferring Pharmaceuticals leading the way by announcing the potential layoff of up to 500 employees across its global operations.