Pharmaceutical Industry Faces Continued Workforce Reductions Amid Strategic Shifts

The pharmaceutical and biotech industries continue to experience significant workforce reductions and strategic realignments in 2025, as companies adapt to changing market conditions, research priorities, and financial pressures.

Major Layoffs Across Multiple Companies

Mersana Therapeutics announced it will cut approximately 55% of its workforce, affecting about 56 employees, to extend its cash runway into mid-2026. The Cambridge, Massachusetts-based company is refocusing efforts on its lead antibody-drug conjugate program for breast cancer.

Biomea Fusion is reducing its workforce by about 35%, impacting around 28 employees, as part of cost-cutting measures. The Redwood City, California-based company will consolidate operations at its San Carlos research facility and focus on developing two key drug candidates.

Unity Biotechnology is laying off its entire workforce of 16 employees as it evaluates strategic alternatives, including a potential merger or sale. The San Francisco-based company recently reported mixed results from a Phase IIb trial of its eye therapy candidate.

Pliant Therapeutics is cutting roughly 45% of its workforce, affecting about 77 employees, following the discontinuation of a Phase IIb/III study for its idiopathic pulmonary fibrosis drug candidate. The company aims to extend its cash runway to support future clinical trials.

Strategic Shifts and Pipeline Reprioritization

Arvinas announced it is ending two Phase III trials for its cancer molecule vepdegestrant while laying off approximately one-third of its staff, affecting about 143 employees. The company aims to streamline operations and enable efficient progression of its portfolio.

Cargo Therapeutics is discontinuing a mid-stage study of its lead CAR-T candidate and parting with approximately 50% of its employees, letting go 81 people. The company cited disappointing clinical trial results as the reason for the strategic shift.

Relay Therapeutics is laying off around 10% of its workforce, affecting about 30 employees, as part of efforts to streamline its research organization. The company aims to save approximately $50 million annually through these changes.

Industry-Wide Trends and Implications

The ongoing wave of layoffs reflects broader trends in the pharmaceutical and biotech sectors, including:

1. Increased focus on core assets and pipeline prioritization
2. Efforts to extend cash runways amid challenging market conditions
3. Strategic realignments following clinical trial setbacks
4. Consolidation of research and manufacturing operations

As companies navigate these challenges, the industry landscape continues to evolve, with potential implications for drug development timelines, therapeutic focus areas, and overall employment trends in the life sciences sector.