Tango Therapeutics Cuts Staff Amid Biotech Industry Challenges

Tango Therapeutics, a prominent oncology drugmaker, has announced a significant reduction in its workforce, laying off approximately 20% of its staff. This move comes as part of a broader trend of restructuring and cost-cutting measures across the biotech industry, reflecting the ongoing challenges in the sector.

Tango's Strategic Realignment

Tango Therapeutics CEO Barbara Weber confirmed the company's decision to reduce spending on preclinical research and lay off about 30 employees. The company, which had 155 full-time staff as of December 31, cited the "extremely challenging financial markets" as the primary driver behind this difficult decision.

"We, like so many others, have been forced to take steps to extend our cash runway and focus our resources on our PRMT5 programs," Weber stated, emphasizing the company's commitment to its lead drug target.

This restructuring follows a series of pipeline adjustments made by Tango over the past year. In May, the company discontinued TNG348, a drug that was being studied in combination with the PARP inhibitor Lynparza, due to liver function abnormalities observed in clinical trial participants. Later in November, Tango deprioritized one of its three drugs targeting the PRMT5 enzyme, narrowing its focus to two remaining candidates.

PRMT5 Inhibition: A Competitive Landscape

Tango's lead compound, TNG462, is currently being tested in patients with certain pancreatic and lung cancers. The company has reported promising early clinical data from a Phase 1/2 trial, claiming a favorable safety and tolerability profile compared to competitors.

The field of PRMT5 inhibition has gained significant attention since the 2010s, with several pharmaceutical giants including Amgen, Bristol Myers Squibb, and Bayer developing their own PRMT5 programs. Tango maintains strategic partnerships with industry leaders, collaborating with Gilead Sciences and Eli Lilly on various projects.

Biotech Sector Faces Headwinds

Tango's workforce reduction is not an isolated incident in the biotech industry. Several notable companies, including IGM Biosciences, Intellia Therapeutics, and Cargo Therapeutics, have also implemented restructuring and layoffs in 2025.

These industry-wide challenges stem from a combination of factors, including a shift in investment trends away from the biotech sector and new concerns arising from recent policy changes. The Trump administration's policies on tariffs and federal health funding have added to the uncertainty facing biotech companies.

Despite these challenges, Tango reported a relatively strong financial position at the end of 2024, with approximately $258 million in cash, cash equivalents, and short-term securities. The company stated in February that it expected its financial runway to extend into 2026.

However, like many of its peers in the biotech sector, Tango's stock performance has been volatile. The company, which raised $353 million in its public debut via a SPAC deal in 2021, saw its shares trading at just over $1 per share as of the most recent market close.