Pharmaceutical Industry Faces Major Layoffs in Q1 2025, Despite Overall Decline in Job Cuts

The pharmaceutical industry experienced significant workforce reductions in the first quarter of 2025, with several major companies announcing layoffs. However, the total number of employees affected has decreased compared to the same period last year, according to recent data compiled by BioSpace.

Top Biopharma Layoffs of Q1 2025

Novartis Leads with Largest Cuts

Swiss pharmaceutical giant Novartis topped the list with the largest layoff, affecting 427 employees at its U.S. headquarters in East Hanover, New Jersey. The cuts, scheduled to take place between June 13 and October 24, are part of a broader restructuring effort. Additionally, Novartis is closing its Campus Point manufacturing facility in San Diego, resulting in 34 job losses effective June 27.

These recent cuts follow Novartis' December announcement of 330 layoffs at sites in Germany and Boston, which were acquired as part of the company's $2.9 billion acquisition of MorphoSys. The move was intended to strengthen Novartis' oncology portfolio with the small molecule BET inhibitor pelabresib.

Galapagos Announces Major Restructuring

Belgium-based biotech Galapagos revealed plans in January to split into two separate entities by mid-2025, resulting in a 40% reduction of its workforce. This restructuring is expected to affect approximately 300 employees across its European operations. The company will close its site in France and decrease staff in Belgium as part of this initiative.

CEO Paul Stoffels described the separation as a "critical step" for unlocking shareholder value and positioning the business for sustainable growth. The restructuring will result in two entities: an innovative medicines specialist and a cell therapy company that will retain the Galapagos name. As part of this shift, Galapagos will reclaim the rights to its pipeline from Gilead and discontinue its small molecules program.

Ongoing Cost-Cutting Measures at Major Pharma Companies

Bristol Myers Squibb Continues Workforce Reductions

Bristol Myers Squibb (BMS) announced multiple layoffs affecting its operations in New Jersey and California. The largest cut involves 223 employees at its Lawrenceville, New Jersey facility, effective from May 22 to August 1. An additional 67 employees at the same location will be let go between April 24 and December 11. In Redwood City, California, BMS plans to lay off 57 employees effective April 22.

These workforce reductions are part of BMS's broader cost-cutting strategy announced in 2024, which initially aimed to eliminate about 2,200 jobs by the end of that year. The company has since expanded its cost-saving goals, now targeting $2 billion in savings through 2027.

Other Notable Layoffs

Merck disclosed plans to let go of 163 employees at its Riverside, Pennsylvania manufacturing site, which is slated for closure. The layoffs will occur in three rounds starting May 16 and ending in 2026. This follows the company's 2022 announcement to close the facility after production stopped in 2024, affecting about 300 employees in total.

Gilead Sciences continues to reduce its workforce at its Foster City, California headquarters, with 149 employees to be laid off effective May 27. This follows a previous cut of 104 employees announced in November, bringing the total known layoffs at this location to 253 since late 2024.

Despite these significant workforce reductions, the overall number of employees affected by layoffs in the biopharma sector has decreased by 18% year-over-year during the first quarter of 2025. In total, 70 companies laid off approximately 4,015 employees during this period, according to BioSpace data.

As the pharmaceutical industry continues to evolve and adapt to changing market conditions, companies are focusing on strategic realignments and cost-cutting measures to position themselves for future growth and success in an increasingly competitive landscape.