Genentech Implements Fourth Round of Layoffs Amid Ongoing Restructuring

Genentech, a subsidiary of Swiss pharmaceutical giant Roche, has announced another wave of job cuts at its South San Francisco headquarters, marking the fourth round of layoffs in the past 15 months. The company is eliminating 87 positions, effective September 15, as revealed in a California Worker Adjustment and Retraining Notification (WARN) report filed last week.

Ongoing Workforce Reductions

This latest round of dismissals follows a series of job cuts that have impacted over 700 positions at Genentech since April 2024. The company's restructuring efforts began with a 3% workforce reduction affecting 436 employees, followed by the closure of its cancer immunology research department in August 2024. Subsequently, 93 employees in South San Francisco were laid off, and an additional 143 jobs were cut in May 2025.

Despite these reductions, a Roche spokesperson stated last month that the company anticipates its workforce will "remain stable throughout 2025." The spokesperson added, "We are actively hiring in several areas to advance our most promising molecules and capabilities. Today, we have over 2,000 open positions across the Roche group."

Roche's Broader Strategy

The layoffs at Genentech are part of a larger strategic shift within the Roche group. In April 2025, Roche eliminated 108 positions at its molecular systems division in Santa Clara, California. However, the company has also announced significant investments in its U.S. operations, including:

• A $50 billion investment plan
• Expansion of an Indianapolis diagnostics campus
• Development of a manufacturing plant in North Carolina
• Establishment of three new R&D sites

These moves suggest that while Roche is streamlining certain operations, it is also positioning itself for future growth in key areas of research and development.

Industry Implications

The ongoing restructuring at Genentech reflects broader trends in the pharmaceutical industry, where companies are reevaluating their research priorities and operational efficiency. The closure of Genentech's cancer immunology research department, in particular, signals a shift in focus towards "the most-promising molecules" in the company's portfolio.

As the industry continues to evolve, companies like Genentech and Roche are making strategic decisions to balance cost-cutting measures with investments in areas of potential growth. The impact of these changes on drug development pipelines and industry employment trends remains to be seen.