Biopharma Job Market Tightens as Applications Surge and Openings Decline in Q1 2025

The pharmaceutical and biotechnology industry faced a challenging job market in the first quarter of 2025, with increased competition for fewer positions and ongoing layoffs, according to recent data from BioSpace. Despite some positive developments in manufacturing investments, the overall trend points to a continued employer's market.

Job Postings Decline While Applications Spike

BioSpace reports a significant 20% year-over-year drop in job postings during Q1 2025, marking the lowest number of positions available in any quarter since 2024. Simultaneously, job applications surged by 91%, indicating heightened competition among job seekers. This trend aligns with broader U.S. labor market data, as the Bureau of Labor Statistics noted a decrease of 877,000 job openings across all sectors in February 2025 compared to the previous year.

The discrepancy between job availability and applicant interest suggests a shift in market dynamics, with companies adopting more selective hiring practices. This trend has persisted throughout 2024 and into the early months of 2025, solidifying the current employer-driven job market.

Layoffs Continue, But Show Signs of Slowing

While layoffs remain a concern in the biopharma sector, there are indications of a potential slowdown. During Q1 2025, approximately 4,015 employees were let go, representing an 18% decrease compared to the same period in 2024. However, March 2025 saw a 12% year-over-year increase in layoffs, with about 1,650 job cuts – the highest monthly total for the quarter.

Notable layoffs included Novartis, which eliminated 427 positions at its U.S. headquarters in East Hanover, New Jersey, and an additional 34 jobs at its San Diego manufacturing facility. Other companies, such as Atara Biotherapeutics, Bristol Myers Squibb, and Cargo Therapeutics, also announced multiple rounds of workforce reductions during the quarter.

The biopharma industry's layoff trends mirror broader economic patterns, as U.S.-based employers across all sectors announced 275,240 job cuts in March 2025, a 60% increase from February and a 205% surge from March 2024, according to outplacement firm Challenger, Gray & Christmas.

Government Cuts and Manufacturing Investments Shape Industry Landscape

The job market in the pharmaceutical and biotechnology sectors has been further impacted by significant government workforce reductions. The Trump administration initiated layoffs at the U.S. Department of Health and Human Services (HHS) during Q1, including approximately 1,000 FDA scientists in February. An additional 10,000 HHS jobs were slated for elimination starting April 1, 2025.

Despite these challenges, some positive developments emerged in the form of major manufacturing investments. Johnson & Johnson and Eli Lilly announced plans to invest billions of dollars in existing and new U.S. manufacturing facilities. J&J's upcoming site in Wilson, North Carolina, is expected to create 500 jobs, while Lilly's four new manufacturing facilities are projected to generate over 3,000 positions in total.

These contrasting trends highlight the complex and evolving nature of the biopharma job market, as the industry navigates government policy changes, ongoing restructuring efforts, and strategic investments in manufacturing capabilities.