Major Biopharma Layoffs in 2025: Tessera and Generate Downsize

Pharmaceutical Industry Layoffs Continue Amid Restructuring and Pipeline Shifts

The pharmaceutical and biotech sectors continue to face significant workforce reductions as companies across the industry announce layoffs, restructuring initiatives, and strategic pivots. Recent weeks have seen a wave of job cuts affecting thousands of employees, with several major players citing the need to streamline operations, extend cash runways, and refocus on key pipeline assets.

Widespread Layoffs Impact Thousands of Workers

Bristol Myers Squibb (BMS) has announced further layoffs as part of its ongoing cost-cutting measures, with plans to eliminate 223 positions at its Lawrenceville, New Jersey site between May and August. This brings the total number of job cuts at the location to 290 for the year so far. The move is part of BMS's broader reorganization aimed at saving $3.5 billion through 2027, which has already resulted in over 1,300 layoffs in Lawrenceville alone since 2024.

Biogen confirmed it will reduce headcount in its research unit, though exact numbers were not disclosed. The cuts come as the company's stock hits a five-year low and newly appointed research head Jane Grogan seeks to "reinvigorate" Biogen's drug discovery efforts. This follows a previous round of layoffs in 2023 that affected approximately 1,000 employees.

Other major pharmaceutical companies implementing workforce reductions include Novartis, which is laying off 427 employees at its U.S. headquarters in East Hanover, New Jersey, and Merck, which plans to eliminate 163 positions at its manufacturing site in Pennsylvania as part of a facility closure.

Strategic Shifts and Pipeline Reprioritization

Many companies are using layoffs as part of broader strategic realignments. Intellia Therapeutics announced a 27% workforce reduction, affecting about 142 employees, as it narrows its focus to two key gene-editing programs. The company will discontinue development of its NTLA-3001 therapy for alpha-1 antitrypsin deficiency-associated lung disease.

Similarly, Atara Biotherapeutics plans to cut approximately 50% of its staff following the FDA's rejection of its T cell therapy for transplant-related blood cancer. The layoffs are expected to be completed by June and could leave the company with around 80 employees.

CytomX Therapeutics is reducing its workforce by about 40%, or 46 employees, to prioritize clinical programs and create financial flexibility. The company's primary focus for 2025 will be the development of CX-2051, an antibody-drug conjugate for advanced metastatic colorectal cancer.

These strategic shifts highlight the industry's ongoing challenges in balancing pipeline development with financial constraints and regulatory hurdles. As companies streamline operations and focus on high-potential assets, the landscape of pharmaceutical research and development continues to evolve rapidly.