Major Players Announce Substantial Cuts

Several industry leaders have implemented large-scale workforce reductions. Bristol Myers Squibb (BMS) is continuing its strategic reorganization, with plans to save an additional $2 billion through 2027 on top of an ongoing program targeting $1.5 billion in cost cuts by the end of 2025. The company has already laid off or announced plans to lay off nearly 1,330 employees this year, with the latest round affecting 195 workers at its Lawrenceville, New Jersey sites.

Novartis is also trimming its workforce, with recent layoffs of 29 employees in San Diego and plans to eliminate approximately 100 more jobs as it winds down its development site there. This follows earlier reports of the company cutting hundreds of development jobs worldwide, including 240 in the U.S.

Pfizer, facing a downturn in sales of its COVID products, is implementing a $3.5 billion cost-cutting initiative announced last October. The company recently disclosed plans to lay off 150 employees from its facility in Sanford, NC, and 60 from its site in Rocky Mount, NC. These cuts are part of a larger effort to reduce costs by $1.5 billion over the next several years.

Biotech Firms Face Tough Decisions

Smaller biotech companies are also feeling the pressure to reduce costs and refocus their efforts. 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.

Vir Biotechnology is laying off 25% of its workforce, eliminating approximately 140 roles across its operations. This reduction is part of a major shift in research and development priorities, with the company abandoning its work on COVID-19 and influenza to focus on hepatitis B and D programs and move into the cancer space via a deal with Sanofi.

bluebird bio is cutting about 25% of its workforce as part of a restructuring aimed at reducing cash operating expenses by 20%. The company will focus resources on advancing clinical development of its gene therapies for sickle cell disease, cerebral adrenoleukodystrophy, and beta-thalassemia.

Strategic Realignments and Pipeline Shifts

Many companies are using workforce reductions as part of broader strategic realignments. Illumina's spinoff Grail is laying off about 350 employees, representing 25% of its workforce, as it restructures to focus on its core multicancer early detection business. The company expects these cost reductions to extend its cash runway from the second half of 2026 into 2028.

Relay Therapeutics has laid off around 10% of its workforce, affecting about 30 employees, as part of an effort to streamline its research organization. The company is focusing on "rationalizing the tools and on streamlining the teams to enable them to be more efficient," with the restructuring expected to save about $50 million a year.

CureVac is reducing its workforce by 30% as it restructures its mRNA collaboration with GSK. Under the new agreement, GSK will assume full control of developing and manufacturing candidate vaccines for seasonal influenza, COVID-19, and avian influenza. CureVac stated that the reduction in force will "create a leaner, more agile organization re-focused on technology innovation, research and development" and extend its cash runway into 2028.

As the pharmaceutical and biotech sectors continue to evolve, companies are making difficult decisions to ensure long-term sustainability and focus on their most promising programs. These workforce reductions and strategic shifts are likely to have lasting impacts on the industry landscape, potentially reshaping research priorities and market dynamics in the coming years.