Layoffs and Restructuring Continue to Reshape Biopharma Landscape

The biopharmaceutical industry continues to face headwinds in 2025, with numerous companies announcing layoffs and restructuring efforts aimed at reducing costs and extending cash runways. From large pharmaceutical giants to small biotechs, the trend of workforce reductions shows no signs of abating as firms grapple with pipeline setbacks, changing market dynamics, and financial pressures.

Major Players Trim Workforces Amid Strategic Shifts

Several of the industry's largest companies have announced significant job cuts in recent months. Bristol Myers Squibb plans to eliminate approximately 2,200 positions by the end of 2025 as part of a $3.5 billion cost-cutting initiative. The layoffs have affected multiple sites, with over 1,300 jobs cut in Lawrenceville, New Jersey alone.

Pfizer is also reducing its workforce, with plans to cut costs by $3.5 billion through 2024 and an additional $1.5 billion by 2027. Recent layoffs include 150 employees at its Sanford, North Carolina facility and 60 at its Rocky Mount site. The company has also announced up to 210 manufacturing job cuts across facilities in Ireland.

Novartis continues its multi-year restructuring effort, recently laying off nearly 140 employees at its New Jersey site. The Swiss pharma giant has cut thousands of jobs globally since 2022 as part of a transformation aimed at saving $1 billion in operational costs.

Johnson & Johnson is eliminating 231 positions at its New Brunswick, New Jersey headquarters, while Bayer is cutting 57 jobs at its Whippany, New Jersey location. Both companies cited the need to adapt to a changing business environment as reasons for the reductions.

Biotech Sector Hit Hard by Pipeline Setbacks and Financial Constraints

Smaller biotechnology companies have been particularly impacted by recent headwinds, with many announcing substantial workforce reductions following clinical trial failures or financial challenges.

FibroGen plans to cut 75% of its U.S.-based workforce after two late-stage trials for its experimental pancreatic cancer drug pamrevlumab failed to meet primary endpoints. The restructuring will affect approximately 355 employees.

Vir Biotechnology is laying off 25% of its staff, eliminating around 140 positions, as it shifts focus away from COVID-19 and influenza programs to concentrate on hepatitis B and D therapies and a new cancer collaboration with Sanofi.

Gene therapy company uniQure announced a dramatic 65% workforce reduction, cutting 300 jobs including several executive positions. The move follows the sale of its Lexington, Massachusetts manufacturing facility and aims to extend the company's cash runway.

Bluebird bio is reducing headcount by 25%, affecting about 94 employees, as it looks to cut operating expenses by 20% and sharpen its focus on commercializing its approved gene therapies.

Emerging Trends and Industry Outlook

The ongoing wave of layoffs reflects broader challenges facing the biopharma sector. Many companies are prioritizing late-stage assets and commercial products while scaling back early-stage research efforts. This trend is evident in decisions by firms like Prime Medicine and Recursion Therapeutics to cut jobs in discovery and preclinical research roles.

Financial constraints are driving biotechs to make difficult choices about pipeline priorities. Several companies, including AN2 Therapeutics, Cue Biopharma, and Rapt Therapeutics, have announced layoffs alongside decisions to narrow their therapeutic focus or discontinue certain programs.

The contract research and manufacturing segments have not been immune to the downturn. Organizations like Charles River Laboratories, Ajinomoto Bio-Pharma Services, and AGC Biologics have all announced job cuts in recent months, reflecting softer demand for outsourced services.

As the industry continues to evolve, companies are increasingly emphasizing operational efficiency and strategic resource allocation. While painful in the short term, these restructuring efforts aim to position firms for long-term success in a challenging market environment. However, the ongoing reductions raise concerns about potential impacts on innovation and drug development timelines across the sector.