Pharmaceutical Industry Faces Widespread Layoffs Amid Strategic Shifts and Pipeline Challenges

The pharmaceutical and biotech sectors continue to grapple with a wave of workforce reductions as companies realign priorities, face clinical setbacks, and aim to extend cash runways. Recent months have seen layoffs affecting thousands of employees across dozens of companies, from industry giants to smaller biotechs.

Major Players Implement Significant Cuts

Bristol Myers Squibb (BMS) is pushing forward with its previously announced plan to eliminate approximately 2,200 jobs by the end of 2024. The latest round will affect 195 employees at its Lawrenceville, New Jersey sites, bringing the total number of layoffs there this year to over 1,130. BMS aims to generate about $1.5 billion in cost savings through 2025, with an additional $2 billion in savings planned through 2027.

Pfizer is also continuing its cost-cutting measures, recently announcing the elimination of up to 210 manufacturing jobs across sites in Ireland. This follows earlier layoffs of 150 employees at its Sanford, North Carolina facility and 60 at its Rocky Mount, North Carolina site. The cuts are part of Pfizer's initiative to reduce costs by $3.5 billion, announced in October 2023 after a downturn in COVID-19 product sales.

Johnson & Johnson disclosed plans to lay off 231 employees at its New Brunswick, New Jersey headquarters by December 27. The company cited the need to adapt to a "complex and rapidly changing environment" as the reason for the workforce reduction.

Biotechs Face Restructuring After Clinical Setbacks

FibroGen announced it will eliminate 75% of its U.S.-based workforce after two late-stage trials for its experimental drug pamrevlumab failed to meet primary endpoints in pancreatic cancer studies. The cuts will affect approximately 127 people at its San Francisco location.

Athira Pharma plans to lay off about 70% of its workforce, roughly 49 positions, following disappointing Phase II/III trial results for its Alzheimer's disease candidate fosgonimeton. The company will shift focus to advancing clinical development of ATH-1105 for neurodegenerative diseases.

Strategic Shifts Lead to Headcount Reductions

Vir Biotechnology revealed plans to lay off 25% of its workforce, eliminating approximately 140 roles, as part of a major shift in research and development priorities. The company will abandon 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.

Gilead Sciences confirmed layoffs affecting 104 employees at its Foster City, California headquarters and 72 employees in Seattle. The cuts are part of changes to align resources with long-term strategic goals, which includes relocating some teams.

uniQure announced a dramatic 65% reduction in its workforce, laying off 300 people, including its Chief Operating Officer. The gene therapy company attributed some of the cuts to the recent sale of its Lexington, Massachusetts manufacturing facility.

As the industry continues to evolve, many companies are making difficult decisions to streamline operations, conserve resources, and refocus on core priorities. These workforce reductions highlight the ongoing challenges and pressures faced by pharmaceutical and biotech firms in a competitive and rapidly changing landscape.