Layoffs Continue to Reshape Biopharma Landscape in 2025

The biopharmaceutical industry continues to face significant headwinds in 2025, with numerous companies announcing workforce reductions and restructuring efforts aimed at preserving cash and refocusing priorities. From large pharmaceutical giants to small biotechs, the trend of layoffs that dominated headlines in 2024 shows no signs of abating in the new year.

Major Players Trim Workforces Amid Strategic Shifts

Bristol Myers Squibb is continuing its sweeping cost-cutting initiative, announcing plans to lay off 516 employees at its Lawrenceville, New Jersey site between May 2025 and March 2026. This brings the total number of BMS employees cut in Lawrenceville to over 800 this year alone. The moves are part of BMS's efforts to generate $3.5 billion in savings through 2027 by streamlining operations and prioritizing key growth areas.

Meanwhile, Novartis disclosed it will eliminate 427 positions at its U.S. headquarters in East Hanover, New Jersey between June and October. This follows the company's decision in late 2024 to close sites in Germany and Boston acquired through its $2.9 billion MorphoSys deal, affecting 330 employees. The Swiss pharma giant continues to reshape its organization while pursuing bolt-on acquisitions to fuel future growth.

Johnson & Johnson is not immune to the pressures, revealing plans to cut 231 jobs at its New Brunswick, New Jersey headquarters by year-end. A company spokesperson noted the need to "adapt and evolve in the midst of a complex and rapidly changing environment."

Biotechs Face Tough Choices After Trial Failures

Several smaller biotechs have been forced to make difficult decisions following disappointing clinical trial results. Intellia Therapeutics announced it will reduce its workforce by 27%, eliminating approximately 140 roles, as it discontinues work on COVID-19 and influenza programs to focus on hepatitis B and D. The company will also advance into oncology through a new deal with Sanofi.

FibroGen revealed plans to slash 75% of its U.S.-based workforce after two late-stage trials of its experimental pancreatic cancer drug pamrevlumab failed to meet survival endpoints. The cuts will affect around 350 employees as FibroGen terminates the pamrevlumab program and halts related obligations.

In a similar vein, Athira Pharma will lay off about 70% of its staff following the failure of its Alzheimer's candidate fosgonimeton in a Phase II/III trial. The company will pivot to focus on advancing a potential ALS treatment.

Cash Preservation Drives Restructuring Efforts

Even without the impetus of failed trials, many biotechs are trimming headcount to extend cash runways in a challenging funding environment. Passage Bio announced it will cut 55% of its workforce, or about 32 people, to stretch its cash into 2027 as it advances its gene therapy programs.

Repare Therapeutics disclosed plans to lay off 25% of its staff, primarily from its preclinical group, as part of a strategic reprioritization of R&D activities. The move is expected to generate $15 million in annual savings.

Similarly, Caribou Biosciences parted ways with 21 employees, representing 12% of its workforce, as it discontinues preclinical development of allogeneic CAR-NK therapies to focus resources on its allogeneic CAR-T cell platform.

The wave of layoffs serves as a stark reminder of the volatile nature of drug development and the pressing need for biotechs to carefully manage resources in an uncertain economic climate. As 2025 progresses, the industry will likely see further consolidation and strategic pivots as companies strive to weather the storm and position themselves for future success.