Genentech Restructures Workforce Amid Strategic Shifts in Pharmaceutical Industry

Latest Round of Layoffs Hits South San Francisco Headquarters

Genentech, a subsidiary of Roche, has announced another round of layoffs at its South San Francisco headquarters, with 87 employees set to be terminated on September 15. This decision comes on the heels of a previous workforce reduction just last month, which saw 143 employees let go from the same location.

The company's spokesperson previously stated that such adjustments are necessary to ensure Genentech can "better address patient needs and deliver novel medicines." This latest round brings the total number of employees terminated at Genentech to over 500 in the past 15 months, signaling a significant restructuring of the company's operations.

Shifting Priorities and Strategic Realignment

The workforce reductions are part of a broader strategic shift at Genentech. In April 2024, the company downsized by 3%, affecting approximately 400 employees across multiple departments. This was followed by the termination of a $3 billion agreement with Adaptimmune to collaborate on allogeneic T cell therapies.

August 2024 saw further changes, with Genentech rearranging its oncology operations. The company shut down its cancer immunology unit, integrating its R&D efforts in this area into its molecular oncology program. A company spokesperson attributed this decision to "shifts in the science of immuno-oncology."

Continued Investment in Oncology and New Therapeutic Areas

Despite the restructuring, Genentech and Roche remain committed to oncology research. In May 2025, the company expanded its partnership with Orionis Biosciences, committing over $2 billion to develop novel small-molecule glues for challenging cancer targets. This builds upon an initial $47 million agreement from 2023.

Roche has also made significant investments beyond cancer research. The company signed a potential $1 billion contract with Innovent for an anti-DLL3 antibody-drug conjugate targeting small-cell lung cancer and other neuroendocrine tumors. Additionally, Roche made a $5.3 billion investment in Zealand Pharma's weight-loss therapy, petrelintide, signaling a move into the competitive obesity treatment market.

Manufacturing Expansion Amid Workforce Reductions

While Genentech continues to reduce its workforce in San Francisco, the company is simultaneously expanding its manufacturing capabilities elsewhere. In May, Genentech announced a $700 million investment in North Carolina to construct a production plant for next-generation obesity assets. This facility is expected to create 400 new manufacturing jobs once operational, with an additional 1,500 jobs during the construction phase.

These contrasting moves highlight the complex nature of Genentech's restructuring efforts, as the company seeks to optimize its operations while pursuing new therapeutic areas and expanding its manufacturing capabilities.