Layoffs Continue to Reshape Pharmaceutical Industry Landscape

The pharmaceutical industry continues to face significant headwinds in 2025, with numerous companies announcing workforce reductions and strategic restructurings. This wave of layoffs reflects ongoing challenges in drug development, shifting market dynamics, and efforts to streamline operations across the sector.

Major Players Trim Workforce Amid Cost-Cutting Measures

Several industry giants have implemented substantial staff cuts as part of broader cost-reduction initiatives. Bristol Myers Squibb (BMS) recently disclosed plans to lay off 195 employees at its Lawrenceville, New Jersey sites, bringing its total job cuts in the area to nearly 1,330 this year. This move is part of BMS's strategic reorganization aimed at saving $3.5 billion through 2027.

Pfizer, another pharmaceutical heavyweight, is eliminating up to 210 manufacturing jobs across its sites in Ireland. This follows earlier layoffs at its U.S. facilities in North Carolina, highlighting the company's efforts to optimize its global manufacturing network.

Novartis has also joined the trend, announcing the layoff of 427 employees at its U.S. headquarters in East Hanover, New Jersey. These cuts are part of a larger restructuring effort that has seen the closure of sites in Germany and Boston, affecting over 330 employees.

Biotech Firms Face Tough Decisions Following Clinical Setbacks

Smaller biotech companies have not been immune to the industry's challenges, with many forced to reduce headcount following disappointing clinical trial results or strategic pivots.

FibroGen announced a dramatic 75% reduction of its U.S.-based workforce after two late-stage trials failed to meet primary endpoints. This decision affects approximately 356 employees and marks a significant setback for the company's development programs.

Athira Pharma revealed plans to cut about 70% of its workforce, roughly 49 positions, following the failure of its Alzheimer's disease candidate fosgonimeton in a Phase II/III trial. The company will now focus its resources on advancing clinical development of ATH-1105 for neurodegenerative diseases.

Cargo Therapeutics disclosed a 50% workforce reduction, letting go of 81 employees, after discontinuing a mid-stage study of its lead CAR-T therapy candidate. This move highlights the risks associated with highly specialized and experimental treatment modalities.

Strategic Realignments Drive Industry-Wide Restructuring

Many companies are undergoing strategic realignments to focus on core assets and extend cash runways. Bluebird bio announced a 25% workforce reduction as part of a restructuring aimed at reducing cash operating expenses by 20%. The company will sharpen its focus on the commercial launches of its gene therapies for sickle cell disease, cerebral adrenoleukodystrophy, and beta-thalassemia.

Vir Biotechnology revealed plans to lay off 25% of its workforce, eliminating approximately 140 roles, as it shifts priorities away from COVID-19 and influenza programs to focus on hepatitis B and D, as well as expanding into oncology through a partnership with Sanofi.

Gene therapy company uniQure announced a dramatic 65% reduction in its workforce, cutting 300 jobs, including the departure of its Chief Operating Officer. This restructuring follows the sale of its manufacturing facility and aims to streamline operations and extend the company's cash runway.

These widespread layoffs and strategic shifts underscore the ongoing challenges facing the pharmaceutical industry as companies navigate a complex landscape of scientific, regulatory, and financial pressures. As the sector continues to evolve, further workforce adjustments and organizational changes are likely to shape its future trajectory.