Pharmaceutical Industry Faces Continued Layoffs and Restructuring Amid Strategic Shifts

The pharmaceutical and biotech sectors continue to experience significant workforce reductions and organizational changes as companies adapt to evolving market conditions and reprioritize their pipelines.

Wave of Layoffs Hits Major Players

Several prominent pharmaceutical companies have announced substantial job cuts in recent weeks. Pfizer revealed plans to eliminate up to 210 manufacturing jobs across sites in Ireland, following earlier layoffs in the U.S. Johnson & Johnson is letting go of 231 employees at its New Brunswick, New Jersey, headquarters, while Bayer is cutting 57 positions at its Whippany, New Jersey, location.

These reductions are part of broader cost-cutting initiatives. Bristol Myers Squibb, for instance, is implementing a strategic productivity plan aimed at generating $1.5 billion in savings through 2025, which includes eliminating approximately 2,200 jobs by the end of 2024. The company recently announced the layoff of 117 staff members in Lawrenceville, New Jersey.

Smaller biotech firms are also feeling the pressure. Repare Therapeutics is reducing its workforce by about 25%, primarily affecting its preclinical group. The company expects this move to generate annual savings of approximately $15 million and extend its cash runway into the second half of 2026.

Strategic Realignments and Pipeline Shifts

Many companies are restructuring their operations and refocusing their research efforts. Sage Therapeutics announced it will lay off over 165 employees, or about 33% of its workforce, as part of a strategic reorganization. This decision follows the discontinuation of dalzanemdor development in Alzheimer's disease.

FibroGen is implementing even more drastic measures, eliminating 75% of its U.S.-based workforce after two late-stage trials failed to meet primary endpoints. The company is terminating its pamrevlumab program and halting related obligations.

Vir Biotechnology is cutting 25% of its workforce, approximately 140 roles, as it shifts focus away from COVID-19 and influenza research. The company will instead concentrate on hepatitis B and D programs while expanding into oncology through a deal with Sanofi.

Impact on Research and Development

These layoffs and restructurings are having a significant impact on pharmaceutical R&D efforts. Genentech, for example, is laying off 93 employees at its South San Francisco headquarters, with scientist roles being the hardest hit. This follows the company's decision to close its cancer immunology group.

Similarly, Charles River Laboratories, which provides services to biopharma companies, is reducing its workforce by 3% and streamlining its cost structure. The company is also closing or consolidating 15 smaller sites to adapt to lower demand for its products and services.

As the industry continues to evolve, companies are being forced to make difficult decisions about resource allocation and strategic priorities. While these changes may lead to short-term disruptions, many firms hope that by streamlining operations and focusing on core strengths, they can position themselves for long-term success in an increasingly competitive market.