Pharmaceutical Industry Braces for Continued Layoffs Amid Strategic Shifts

The pharmaceutical and biotech sectors continue to see widespread workforce reductions in 2025 as companies realign priorities and respond to financial pressures. Recent weeks have brought announcements of significant layoffs at multiple firms, signaling ongoing volatility in the industry.

Entrada and Repare Announce Research Staff Cuts

Entrada Therapeutics disclosed plans to reduce its workforce by approximately 20%, primarily affecting research staff. The Boston-based biotech, which focuses on intracellular therapeutics, expects to lay off about 37 employees by the end of Q2 2025. The move comes as Entrada shifts resources toward clinical development of its Duchenne muscular dystrophy (DMD) candidates, including ENTR-601-44 which recently had an FDA clinical hold lifted.

Similarly, Repare Therapeutics announced a 25% reduction in its overall workforce, with cuts concentrated in preclinical research groups. The company aims to prioritize advancing its clinical-stage oncology programs. Repare anticipates annual savings of approximately $15 million from the restructuring, extending its cash runway into the second half of 2026.

Major Pharma Companies Trim Headcount

Industry giants are not immune to the trend, with several big names announcing cuts:

Pfizer plans to eliminate up to 210 manufacturing jobs across sites in Ireland, including Grange Castle, Newbridge and Ringaskiddy. The reductions are part of a multi-year efficiency program targeting $3.5 billion in cost savings.

Johnson & Johnson will lay off 231 employees at its New Brunswick, New Jersey headquarters effective December 27, 2025. A company spokesperson attributed the cuts to the need to adapt in a "complex and rapidly changing environment."

Bayer is cutting 57 positions at its Whippany, New Jersey headquarters, also effective in late December. The move is part of a new operating model aimed at increasing agility and empowering innovation.

Biotech Firms Face Difficult Decisions

Smaller biotech companies are making tough choices as they navigate financial constraints:

FibroGen announced plans to eliminate 75% of its U.S.-based workforce after two late-stage clinical trials failed to meet primary endpoints. The cuts will affect approximately 356 employees as the company terminates its pamrevlumab program.

Cue Biopharma is reducing staff by 25%, affecting about 13 employees, as it shifts focus to its autoimmune program and seeks partners for oncology candidates. The realignment aims to extend Cue's cash runway into mid-2025.

GlycoMimetics will lay off approximately 80% of its staff, around 28 employees, following news that its candidate for relapsed and refractory Acute Myeloid Leukemia will require an additional clinical trial.

These layoffs underscore the volatile nature of the pharmaceutical and biotech industries, where setbacks in clinical trials or shifts in strategic priorities can have immediate and significant impacts on workforce needs. As companies continue to navigate challenges in drug development, market dynamics, and regulatory landscapes, further restructuring efforts may be on the horizon.