Layoffs Continue to Reshape Biopharma Landscape Amid Industry Pressures

The biopharmaceutical industry continues to face significant headwinds in 2025, with numerous companies announcing workforce reductions and restructuring efforts aimed at cutting costs and preserving cash runways. Recent weeks have seen a wave of layoff announcements affecting thousands of employees across the sector.

Major Players Trim Workforces Amid Strategic Shifts

Pharmaceutical giant Pfizer disclosed plans to eliminate up to 210 manufacturing jobs across sites in Ireland as part of ongoing efforts to optimize its global operations. The cuts follow earlier workforce reductions in the U.S., including 150 employees let go from its Sanford, North Carolina facility in July. These moves align with Pfizer's previously announced $3.5 billion cost-cutting initiative launched in late 2024.

Similarly, Bristol Myers Squibb continues to implement its strategic productivity initiative, with recent layoffs affecting 195 employees at its Lawrenceville, New Jersey sites. This brings BMS's total job cuts in 2025 to nearly 1,330 as the company works toward its goal of $1.5 billion in cost savings through 2025.

Novartis is also trimming its workforce, with plans to lay off nearly 140 employees at its New Jersey site as part of a broader restructuring. The Swiss pharma giant cited the need to "build future capabilities and access global talent pools" as it implements changes over the next 2-3 years.

Biotechs Face Pressure to Preserve Cash

Smaller biotechnology companies are not immune to the industry's challenges, with many announcing significant workforce reductions to extend cash runways and refocus on core programs.

Bluebird bio revealed plans to cut about 25% of its staff, or approximately 94 employees, as it sharpens focus on the commercial launches of its gene therapies Lyfgenia, Skysona and Zynteglo. The restructuring aims to reduce cash operating expenses by 20% and extend the company's runway into mid-2025.

FibroGen announced a dramatic 75% reduction of its U.S.-based workforce after two late-stage clinical trials failed to meet primary endpoints. The cuts are part of an "immediate and significant" cost reduction plan as the company terminates its pamrevlumab program.

In a similar move, Athira Pharma will lay off about 70% of its workforce, or 49 positions, following disappointing results for its Alzheimer's disease candidate fosgonimeton in a Phase II/III trial. The company will now focus resources on advancing clinical development of its ALS candidate ATH-1105.

Pipeline Setbacks Drive Restructuring Efforts

Clinical trial failures and regulatory setbacks continue to drive workforce reductions across the industry. Lykos Therapeutics announced plans to lay off around 75% of its staff, or about 75 employees, after the FDA rejected its MDMA-assisted therapy for post-traumatic stress disorder.

Cargo Therapeutics disclosed it is discontinuing a mid-stage study of its lead CAR-T candidate and parting with approximately 50% of its employees. The move affects 81 people and comes as a "surprise disappointment" according to analysts, given promising early clinical data.

Acelyrin revealed plans to lay off about 40 employees, representing 33% of its workforce, as it suspends development programs and narrows focus to its lead candidate lonigutamab for thyroid eye disease.

These layoffs underscore the high-stakes nature of drug development, with companies often forced to quickly pivot and restructure following negative clinical or regulatory outcomes.