Q1 Biopharma Layoffs Hit California and Massachusetts Hard, Job Competition Intensifies

The first quarter of 2025 has seen a significant wave of layoffs in the biopharmaceutical industry, with California and Massachusetts bearing the brunt of workforce reductions. This trend, coupled with a tightening job market, has led to increased competition for fewer available positions in these key biotech hubs.

California and Massachusetts Lead in Layoff Numbers

During Q1 2025, California experienced 22 rounds of biopharma layoffs affecting approximately 995 employees, while Massachusetts saw 17 rounds impacting around 410 people. These two states accounted for the majority of workforce reductions in the industry, with other states such as New Jersey, Pennsylvania, Maryland, New York, and Texas experiencing fewer layoffs.

In California, the San Francisco and San Diego areas were most affected, with 8 and 5 rounds of layoffs respectively. Notable companies implementing cuts in San Francisco included Alector, ALX Oncology, CytomX Therapeutics, and Tenaya Therapeutics. San Diego saw reductions at firms such as BioAtla, Novartis, and Zentalis Pharmaceuticals.

Massachusetts layoffs centered around Boston and Cambridge, with at least 10 rounds of cuts occurring in these cities. Companies like Atea Pharmaceuticals, Elevation Oncology, and Pyxis Oncology reduced their workforce in Boston, while Cambridge saw layoffs at firms including Apriori Bio, Generation Bio, and Omega Therapeutics.

Job Market Tightens as Competition Intensifies

The layoffs have coincided with a challenging job market for those seeking employment in the biopharma sector. BioSpace data reveals a 20% year-over-year drop in job postings during Q1, while job applications surged by 91%. This trend was particularly pronounced in California and Massachusetts:

• California: 26% decrease in job postings, 17% increase in applications
• Massachusetts: 8% decrease in job postings, 45% increase in applications

The situation has continued to worsen in early April, with California seeing 10% fewer job postings and a 97% increase in applications compared to the previous year. Massachusetts experienced a 6% decrease in job postings and a staggering 167% rise in applications.

Notable Layoffs and Company Restructuring

Several significant workforce reductions stood out among the Q1 layoffs:

1. Gilead Sciences announced 149 layoffs at its Foster City headquarters, effective May 27, following a previous round of 104 cuts in November.

2. IGM Biosciences in Mountain View, California, let go of 73% of its workforce, affecting 100 employees, as it halted development of two autoimmune drug candidates.

3. Intellia Therapeutics in Cambridge, Massachusetts, announced a 27% reduction in its workforce throughout 2025, potentially affecting around 140 employees.

4. Lyndra Therapeutics in Watertown, Massachusetts, is winding down operations due to lack of funding, impacting about 60 employees.

These layoffs reflect ongoing challenges in the biopharma industry, including pipeline setbacks, funding constraints, and strategic realignments. As companies continue to streamline operations and focus on high-value programs, the job market remains highly competitive for those seeking employment in this sector.