Layoffs and Restructuring Continue to Impact Pharmaceutical Industry

The pharmaceutical industry continues to face significant challenges in 2025, with numerous companies announcing layoffs, restructuring efforts, and pipeline adjustments. This ongoing trend reflects broader economic pressures and shifting priorities within the sector.

Major Layoffs Across Multiple Companies

Several prominent pharmaceutical and biotech firms have recently announced substantial workforce reductions:

Intellia Therapeutics is cutting approximately 27% of its staff, eliminating around 140 positions. The company will focus its efforts on advancing clinical development of its hepatitis B and D programs while moving into cancer research through a new partnership with Sanofi.

Vir Biotechnology plans to lay off 25% of its workforce, affecting about 140 employees. This reduction comes as part of a major shift in R&D priorities, with the company abandoning its COVID-19 and influenza programs to concentrate on hepatitis B and D treatments.

FibroGen announced it will eliminate 75% of its U.S.-based workforce after two late-stage trials failed to meet primary endpoints. The company is implementing an "immediate and significant" cost reduction plan, which includes terminating its pamrevlumab program.

Gilead Sciences and its subsidiary Kite Pharma are laying off an unspecified number of employees, including 72 people at Gilead's Seattle location, which will close. Kite Pharma will shut down its Philadelphia facility by mid-2025.

Pipeline Adjustments and Strategic Shifts

Many companies are reevaluating their drug pipelines and research priorities:

Sage Therapeutics is discontinuing development of dalzanemdor in Alzheimer's disease and will lay off over 165 employees, about 33% of its workforce. The company will focus on supporting the launch of Zurzuvae for postpartum depression and advancing dalzanemdor in Huntington's disease.

Prime Medicine has laid off a small number of employees following a pipeline reorganization aimed at extending its cash runway into the first half of 2026. The company recently signed a deal with Bristol Myers Squibb worth a potential $3.5 billion to work on ex vivo T cell therapies.

Bluebird bio is cutting about 25% of its workforce as part of a restructuring aimed at reducing cash operating expenses by 20%. The company will focus on advancing its gene therapies for sickle cell disease, cerebral adrenoleukodystrophy, and beta-thalassemia.

Industry-wide Trends and Implications

The ongoing wave of layoffs and restructuring efforts points to broader challenges facing the pharmaceutical industry:

1. Economic pressures: Companies are seeking to reduce costs and extend cash runways in response to uncertain market conditions and reduced funding opportunities.

2. Pipeline reprioritization: Many firms are narrowing their focus to key therapeutic areas and later-stage assets, often at the expense of early-stage research programs.

3. Shifting landscape: The industry continues to adapt to post-pandemic realities, with some companies moving away from COVID-19 and influenza research.

4. Consolidation: Mergers, acquisitions, and strategic partnerships are becoming increasingly common as companies seek to bolster their pipelines and capabilities.

As these trends continue to reshape the pharmaceutical landscape, industry observers will be closely watching for signs of stabilization and potential areas of growth in the coming months.