Pharmaceutical Industry Faces Continued Workforce Reductions Amid Strategic Shifts

The pharmaceutical and biotech sectors continue to experience significant workforce reductions in 2025, as companies across the industry implement strategic realignments and cost-cutting measures. This trend, which began in earnest in 2024, shows no signs of abating as firms grapple with changing market dynamics, pipeline setbacks, and the need to streamline operations.

Major Players Announce Substantial Layoffs

Several industry giants have announced or implemented large-scale workforce reductions in recent months. Bristol Myers Squibb (BMS) has extended its cost-cutting initiative, aiming for an additional $2 billion in savings through 2027. This comes on top of an ongoing program targeting $1.5 billion in cuts by the end of 2025. The latest round of layoffs at BMS affects 223 employees in Lawrenceville, New Jersey, bringing the total number of job cuts at that location to 1,134 for 2024 and 2025.

Novartis, continuing its years-long restructuring effort, has announced the layoff of nearly 140 more employees at its New Jersey site. These cuts, scheduled to occur between February and August 2025, primarily affect commercial field sales teams for specific products. This follows earlier reductions, including the closure of sites in Germany and Boston acquired through its $2.9 billion purchase of MorphoSys.

Johnson & Johnson is not immune to the trend, with plans to lay off 231 employees at its New Brunswick, New Jersey, headquarters by December 27. The company cites the need to adapt to a "complex and rapidly changing environment" as the reason for these cuts.

Biotech Firms Face Difficult Decisions

Smaller biotech companies are also feeling the pressure to reduce costs and refocus their efforts. Intellia Therapeutics announced a reorganization program that will cut around 27% of its workforce, approximately 140 roles. The company is shifting its focus to high-value programs, specifically its investigational gene editors NTLA-2002 for hereditary angioedema and nexiguran ziclumeran for transthyretin amyloidosis.

Cargo Therapeutics revealed plans to lay off about 50% of its workforce following the discontinuation of a mid-stage study of its lead candidate. The cuts will affect 81 employees and are part of a broader strategy to extend the company's cash runway.

Repare Therapeutics disclosed it will cut approximately 75% of its staff, including its chief medical officer. This dramatic reduction leaves the company with fewer than 35 employees as it concentrates resources on advancing its clinical-stage oncology programs.

Industry-wide Trends and Implications

The ongoing wave of layoffs reflects broader trends in the pharmaceutical and biotech industries. Companies are increasingly focused on streamlining operations, prioritizing high-potential programs, and extending cash runways in a challenging economic environment.

Many firms cite the need to reallocate resources to support key clinical programs or commercial launches. For instance, Gilead Sciences and its subsidiary Kite Pharma are implementing layoffs to "further align resources with long-term strategic goals," which includes relocating some teams.

The impact of these workforce reductions extends beyond individual companies, potentially reshaping the industry landscape. As experienced professionals enter the job market, there may be increased competition for remaining positions and a potential brain drain from certain geographic hubs of pharmaceutical and biotech activity.

As the industry continues to evolve, companies will likely face ongoing pressure to optimize their operations and workforce. The challenge for many will be balancing cost-cutting measures with the need to maintain innovation and progress in drug development and commercialization efforts.