Pharmaceutical Industry Continues to Face Layoffs and Restructuring Amid Strategic Shifts

The pharmaceutical industry has seen continued workforce reductions and organizational changes in recent months as companies adapt to evolving market conditions and refocus their strategic priorities.

Major Players Announce Significant Job Cuts

Bristol Myers Squibb (BMS) is continuing its previously announced cost-cutting measures, with plans to lay off 195 more employees at its Lawrenceville, New Jersey sites by the end of 2025. This brings BMS's total layoffs to nearly 1,330 this year as part of its initiative to reduce expenditures by around $1.5 billion through 2025.

Johnson & Johnson is letting go of 231 employees at its New Brunswick, New Jersey headquarters effective December 27. The company cited the need to adapt and evolve "in the midst of a complex and rapidly changing environment" as the reason for the cuts.

Bayer is laying off 57 employees at its Whippany, New Jersey headquarters effective December 27. A company spokesperson stated the pharma is adopting a new operating model to "enable more agility, empower employees to innovate and act, deepen the focus on our mission."

Pfizer plans to eliminate up to 210 manufacturing jobs across sites in Grange Castle, Newbridge and Ringaskiddy, Ireland. The company recently launched a program to assess manufacturing efficiency and find operational efficiencies "to increase productivity within the network."

Biotech Companies Restructure Amid Clinical and Financial Challenges

FibroGen announced it will eliminate 75% of its U.S.-based workforce after two late-stage trials failed to meet primary endpoints. The company is implementing an "immediate and significant" cost reduction plan to terminate its pamrevlumab program and halt related obligations.

Bluebird bio will cut about 25% of its workforce as part of a restructuring aimed at reducing cash operating expenses by 20%. The company plans to focus resources on advancing commercial launches of its gene therapies for sickle cell disease, cerebral adrenoleukodystrophy, and beta-thalassemia.

Athira Pharma will lay off about 70% of its workforce following disappointing clinical trial results for its Alzheimer's disease candidate. The company will focus on advancing clinical development of ATH-1105 for neurodegenerative diseases, including amyotrophic lateral sclerosis (ALS).

Industry-Wide Trends and Strategic Shifts

The layoffs and restructuring efforts reflect broader trends in the pharmaceutical industry, including:

1. Increased focus on core therapeutic areas and pipeline prioritization
2. Cost-cutting measures to extend cash runways and improve operational efficiency
3. Adaptation to changing market dynamics and competitive pressures
4. Realignment of resources following clinical trial failures or strategic pivots

As companies navigate these challenges, the industry continues to evolve, with many organizations streamlining operations and refocusing on high-priority programs to drive long-term growth and innovation.