Widespread Layoffs Continue to Reshape Biopharma Landscape in 2025

The pharmaceutical and biotechnology industries continue to face significant headwinds in 2025, with numerous companies announcing layoffs and restructuring efforts. These workforce reductions span organizations of all sizes, from global pharmaceutical giants to small biotechs, as the sector grapples with pipeline setbacks, shifting market dynamics, and ongoing economic pressures.

Major Players Implement Cost-Cutting Measures

Bristol Myers Squibb (BMS) has expanded its ongoing cost-cutting initiative, targeting an additional $2 billion in savings through 2027. This comes on top of a previously announced $1.5 billion reduction plan set to conclude by the end of 2025. The latest round of cuts will affect contract positions, open roles, and result in attrition across the company. BMS has already laid off over 1,300 employees in 2024, with its Lawrenceville, New Jersey site particularly impacted.

Novartis is also continuing its restructuring efforts, announcing nearly 140 layoffs at its New Jersey location. The cuts, scheduled between February and August 2025, will primarily affect commercial field sales teams for products including Xolair, Tafinlar, and Mekinist. This follows Novartis' April 2022 announcement of a massive business transformation initiative aimed at saving around $1 billion in operations costs through 2024.

Biotech Firms Face Tough Decisions Amid Clinical Setbacks

Smaller biotechnology companies have not been spared from the industry-wide belt-tightening. Editas Medicine announced it will terminate work on its ex vivo sickle cell disease therapy and cut about 65% of its workforce over the next six months. The move comes as Editas shifts focus to developing in vivo CRISPR-editing assets.

FibroGen revealed plans to eliminate 75% of its U.S.-based workforce following the failure of two late-stage trials investigating its experimental drug pamrevlumab for pancreatic cancer. The company is implementing an "immediate and significant" cost reduction plan to terminate the pamrevlumab program and halt any related obligations.

Strategic Shifts and Pipeline Reprioritization

Many companies are using layoffs as part of broader strategic realignments. Vir Biotechnology announced it will cut 25% of its workforce, eliminating approximately 140 roles, as it shifts focus away from COVID-19 and influenza programs to concentrate on hepatitis B and D, as well as expanding into oncology through a deal with Sanofi.

Bluebird bio revealed plans to reduce its workforce by about 25% as part of a restructuring aimed at cutting cash operating expenses by 20%. The company intends to sharpen its focus on the commercial launches of its gene therapies for sickle cell disease, cerebral adrenoleukodystrophy, and beta-thalassemia.

As the pharmaceutical industry continues to evolve in response to scientific, economic, and regulatory challenges, further workforce reductions and strategic pivots are likely throughout 2025. Companies will need to carefully balance cost-cutting measures with investments in promising pipeline assets and emerging technologies to position themselves for long-term success in an increasingly competitive landscape.