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 strategic restructuring efforts. This trend, which began in earnest in 2023 and accelerated through 2024, shows no signs of abating as firms grapple with pipeline setbacks, shifting market dynamics, and ongoing economic pressures.

Major Players Trim Headcount Amid Strategic Shifts

Several industry giants have announced substantial layoffs in recent months. Pfizer plans to eliminate up to 210 manufacturing jobs across sites in Ireland as part of its ongoing cost-cutting initiatives. The company had previously disclosed plans to reduce costs by $3.5 billion last year, followed by an additional $1.5 billion over the next several years.

Bristol Myers Squibb continues its strategic reorganization, with plans to lay off 223 employees at its Lawrenceville, New Jersey facilities between May and August 2025. This brings the total number of employees cut at that location to 290 this year, part of a broader effort to eliminate about 2,200 jobs company-wide by the end of 2024.

Novartis is also trimming its workforce, laying off 427 employees at its U.S. headquarters in East Hanover, New Jersey between June and October. This follows previous cuts of 330 employees in December 2024 as the company closed sites in Germany and Boston acquired through its $2.9 billion purchase of MorphoSys.

Biotech Firms Face Tough Decisions After Clinical Setbacks

Smaller biotech companies have not been spared from the industry-wide belt-tightening. Marinus Pharmaceuticals announced it will lay off over 165 employees, representing about 33% of its workforce, following disappointing Phase III results for its seizure medication ganaxolone. The cuts will primarily affect R&D staff and include five members of the leadership team.

FibroGen plans to eliminate 75% of its U.S.-based workforce after two late-stage trials for its experimental drug pamrevlumab failed to meet primary endpoints in pancreatic cancer studies. The company is implementing an "immediate and significant" cost reduction plan to terminate the pamrevlumab program and halt related obligations.

Cargo Therapeutics is laying off 81 employees, about 50% of its staff, after discontinuing a mid-stage study of its lead CAR-T therapy candidate. The company cited a "challenging fundraising environment" as a factor in its decision to narrow its focus and preserve cash.

Industry-Wide Trends Point to Ongoing Challenges

The wave of layoffs reflects broader challenges facing the biopharma sector. Many companies are reprioritizing their pipelines, focusing resources on late-stage assets with the highest potential return on investment. This often comes at the expense of early-stage research programs and support functions.

Economic factors, including inflation and rising interest rates, have made it more difficult for companies to raise capital, particularly affecting smaller biotechs without approved products. This has forced many firms to make tough decisions about which programs to advance and which to shelve.

Additionally, the post-pandemic market for COVID-19 products has contracted more rapidly than some companies anticipated, leading to revenue shortfalls and necessitating cost-cutting measures. This is evident in Moderna's decision to lay off about 50 employees within two digital departments as part of its ongoing efficiency efforts.

As the industry continues to evolve, companies are likely to face further pressure to streamline operations, focus on core strengths, and demonstrate clear paths to profitability. While painful in the short term, these adjustments may ultimately lead to a more resilient and focused biopharma sector in the years to come.