Pharmaceutical Industry Grapples with Widespread Layoffs Amid Strategic Shifts

The pharmaceutical and biotech sectors continue to face significant workforce reductions in 2025 as companies reevaluate their strategic priorities and financial positions. Recent months have seen a wave of layoffs affecting thousands of employees across the industry, from small biotechs to global pharmaceutical giants.

Major Players Implement Cost-Cutting Measures

Several large pharmaceutical companies have announced substantial job cuts as part of broader cost-saving initiatives. Bristol Myers Squibb revealed plans to eliminate approximately 2,200 positions by the end of 2024, with layoffs continuing into 2025. The company aims to generate $2 billion in savings through 2027, building on its previous $1.5 billion cost reduction program.

Novartis is also trimming its workforce, with recent cuts affecting 427 employees at its U.S. headquarters in East Hanover, New Jersey. These layoffs are part of an ongoing restructuring effort that has impacted multiple sites globally.

Pfizer, facing declining COVID-19 product sales, is implementing a $3.5 billion cost-cutting initiative announced in late 2024. The company has conducted several rounds of layoffs, including 210 manufacturing jobs across sites in Ireland and over 200 positions in North Carolina.

Biotech Startups Face Financial Pressures

Smaller biotech firms have not been immune to the industry-wide trend, with many forced to make difficult decisions in the face of funding challenges and clinical setbacks.

Allakos, for instance, announced it would cut 75% of its workforce, leaving the company with only about 15 employees as it explores strategic alternatives. The decision followed disappointing Phase I results for its chronic spontaneous urticaria candidate.

FibroGen revealed plans to 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.

Strategic Realignments Drive Organizational Changes

Many companies are using layoffs as part of broader strategic shifts. Gilead Sciences and its subsidiary Kite Pharma are reducing headcount as they realign resources with long-term goals. The restructuring includes the closure of Kite's Philadelphia facility and Gilead's Seattle research site.

Vir Biotechnology announced a 25% workforce reduction, eliminating approximately 140 roles, as it shifts focus away from COVID-19 and influenza programs to concentrate on hepatitis B and D, as well as expanding into oncology through a deal with Sanofi.

Gene therapy company uniQure is cutting 65% of its employees, totaling 300 people, following the sale of its Lexington, Massachusetts manufacturing facility. The move is designed to streamline operations and extend the company's cash runway.

As the pharmaceutical industry continues to evolve in response to market pressures and scientific advancements, further workforce adjustments are likely. Companies across the sector are striving to balance innovation and financial sustainability in an increasingly competitive landscape.