Biopharma Job Market Shows Mixed Signals: Hiring Slow to Pick Up, but Layoffs Cool Off

The pharmaceutical and biotechnology job market is displaying a complex landscape as we move into 2025, with hiring activity remaining sluggish but layoffs showing a significant decrease. This mixed picture offers both challenges and opportunities for industry professionals and companies alike.

Hiring Activity Remains Subdued, but Optimism Persists

Despite hopes for an uptick in hiring at the beginning of the year, February data from BioSpace indicates that the job market has yet to heat up as anticipated. Job postings on the platform saw a 23% year-over-year decrease in February 2025, surpassing January's 19% decline. Additionally, live job listings on BioSpace dipped by 10% from January to February 2025.

However, industry experts remain optimistic about future hiring prospects. Greg Clouse, BioSpace Recruitment Manager, expects a hiring increase this year based on conversations with human resources and talent acquisition leaders. "From conversations, people are going to start hiring," Clouse stated. "It's just a matter of when."

Supporting this optimism, the BioSpace 2025 U.S. Life Sciences Employment Outlook report found that 59% of organizations surveyed late last year were actively recruiting, with 42% predicting an increase in open roles for 2025.

Layoffs Cool Off, Easing Competition for Available Positions

While hiring has been slow to pick up, there's encouraging news on the layoff front. For the second consecutive month, year-over-year job losses have slowed significantly. BioSpace tallies show that the number of employees laid off decreased by more than half, dropping from about 2,180 in February 2024 to roughly 990 in February 2025. This 55% year-over-year decrease far surpasses January's 14% decline.

Clouse noted that this leveling off in layoffs is a positive sign for job candidates. "It's great that there's not as many layoffs, because that means there's not as many people fighting for these jobs that are out there," he explained.

Despite the overall positive trend, some companies still faced significant cuts. Six biopharmas axed at least 50% of their workforce in February, including Kojin Therapeutics, Spotlight Therapeutics, and Viracta Therapeutics, which are shutting down operations entirely. Other companies that announced layoffs include Inventiva, Repare Therapeutics, and Bristol Myers Squibb, with BMS planning to let go of nearly 300 people in Lawrenceville, New Jersey, between April and December.

Long-Term Outlook Remains Positive for Life Sciences Employment

Looking ahead, the U.S. Bureau of Labor Statistics projects positive growth for the biopharma sector over the next several years. Employment in the scientific research and development services industry, which includes life sciences R&D, is expected to increase by 12.8% from 2023 to 2033. This growth rate is more than three times the 4.2% projected for total wage and salary employment across all sectors.

While the current job market may present challenges, the long-term outlook suggests that opportunities in the life sciences sector will continue to expand, offering hope for both job seekers and industry growth in the coming years.