Wave of Layoffs Hits Major Players

Several prominent pharmaceutical and biotech companies have announced substantial workforce reductions in recent weeks. Biogen confirmed it will lay off an undisclosed number of employees from its research unit as part of efforts to "reinvigorate" its drug discovery capabilities. The move comes amid a broader cost-cutting program announced in July 2023 that aims to eliminate around 1,000 jobs and save $1 billion in operating expenses.

Bristol Myers Squibb (BMS) continues its strategic reorganization, revealing plans for an additional $2 billion in savings through 2027 on top of an ongoing $1.5 billion cost-cutting initiative. The company will reduce its workforce in New Jersey by 67 employees, with layoffs occurring from April through December 2025. This follows previous cuts that affected over 1,300 employees in Lawrenceville, New Jersey alone.

Novartis announced it will reduce its U.S. workforce by 427 employees at its headquarters in East Hanover, New Jersey. The layoffs, set to take place from June to October, come after the company let go of 330 employees in December 2024 as part of site closures in Germany and Boston.

Strategic Shifts and Pipeline Reprioritization

Many companies are using workforce reductions as part of broader strategic realignments. Galapagos revealed plans to split into two entities by mid-2025, cutting 40% of its workforce – approximately 300 employees – across its European operations. The company will create an innovative medicines specialist and a cell therapy company, while also taking back pipeline rights from Gilead and discontinuing its small molecules program.

Repare Therapeutics announced an unspecified number of layoffs as it reprioritizes its pipeline to focus on advancing its Phase I clinical programs: RP-1664, a PLK4 inhibitor, and RP-3467, a Pol θ ATPase inhibitor. The Quebec-based biotech expects the headcount reductions will help extend its cash runway into mid-2027.

Intellia Therapeutics is reducing its workforce by around 27% as part of a reorganization program to focus on high-value programs, specifically its investigational gene editors NTLA-2002 for hereditary angioedema and nexiguran ziclumeran for transthyretin amyloidosis. The company will discontinue development of NTLA-3001 for alpha-1 antitrypsin deficiency-associated lung disease.

Impact on Research and Development

The wave of layoffs and restructuring efforts is having a significant impact on research and development activities across the industry. Moderna cut 10% of roles – about 50 employees – within two digital departments as part of ongoing cost efficiency efforts. The company reported lower-than-expected revenue for Q4 2024 and aims to reduce annual R&D costs by approximately $1.1 billion by 2027 compared to 2024 levels.

Charles River Laboratories, which provides products and services to biopharma companies, is trimming its workforce at multiple locations. The company is closing its Durham County, North Carolina facility and letting go of 31 employees there. It has also made cuts at its Memphis, Tennessee cell and gene therapy facility, though the exact number of affected employees was not specified.

As companies streamline operations and refocus their pipelines, the industry may see a shift in research priorities and a potential slowdown in early-stage drug discovery efforts. However, many firms are emphasizing that the cuts will allow them to allocate more resources to their most promising clinical programs and near-term opportunities.