Pharmaceutical Industry Hit by Major Layoffs and Restructuring in 2025

The pharmaceutical industry has experienced significant turbulence in early 2025, with numerous companies announcing layoffs, restructuring efforts, and pipeline adjustments. This wave of changes reflects ongoing challenges in drug development, shifting market dynamics, and efforts to streamline operations across the sector.

Wave of Layoffs Sweeps Across Biopharma

Several major pharmaceutical and biotech companies have announced substantial workforce reductions in recent months. Notably, Pfizer disclosed plans to eliminate up to 210 manufacturing jobs across sites in Ireland, following earlier cuts of 150 employees at its Sanford, North Carolina facility. Johnson & Johnson is letting go of 231 employees at its New Brunswick, New Jersey headquarters, while Novartis announced the layoff of nearly 430 employees from its East Hanover, New Jersey site.

Smaller biotech firms have also been forced to make difficult decisions. Caribou Biosciences cut 21 employees, representing 12% of its workforce, as it discontinued preclinical development of allogeneic CAR-NK therapies. Relay Therapeutics laid off around 10% of its staff, affecting about 30 employees, as part of efforts to streamline its research organization.

The trend extends beyond U.S. borders, with Swiss-based Evotec potentially cutting 400 roles globally, amounting to around 8% of its workforce. German biotech CureVac announced a 30% reduction in its workforce as it restructures its mRNA collaboration with GSK.

Strategic Shifts and Pipeline Reprioritization

Many companies are using these workforce reductions as an opportunity to refocus their research and development efforts. Vir Biotechnology, for instance, is laying off 25% of its workforce, eliminating approximately 140 roles, as part of a major shift away from COVID-19 and influenza research towards hepatitis B and D programs and a new focus on cancer through a deal with Sanofi.

FibroGen announced it would eliminate 75% of its U.S.-based workforce after two late-stage trials failed to meet primary endpoints. The company is implementing an "immediate and significant" cost reduction plan to terminate its pamrevlumab program and halt related obligations.

Intellia Therapeutics is reducing its workforce by around 27%, cutting approximately 140 roles, as it narrows its focus to high-value programs, specifically its investigational gene editors NTLA-2002 for hereditary angioedema and nexiguran ziclumeran for transthyretin amyloidosis.

Industry-wide Restructuring Efforts

Beyond layoffs, many pharmaceutical companies are undertaking broader restructuring initiatives. Bristol Myers Squibb announced plans for an additional $2 billion in savings through 2027, on top of an ongoing program targeting $1.5 billion in cost cuts by the end of 2025. These efforts involve changes in organizational design and enhanced operational efficiency.

Bayer is adopting a new operating model with a revised organizational structure, resulting in layoffs at its Whippany, New Jersey headquarters. The company had already reduced its headcount by about 1,500 earlier in the year, mainly by eliminating management positions.

Takeda continues its multi-year restructuring effort, with recent layoffs affecting 220 employees in Massachusetts. This brings the total number of employees laid off or scheduled for termination to over 1,300 so far in 2025.

These industry-wide changes reflect ongoing challenges in drug development, increasing competition, and the need for greater operational efficiency in a rapidly evolving healthcare landscape. As companies navigate these turbulent times, the impact on research pipelines, drug development timelines, and overall industry dynamics remains to be seen.