Gilead Sciences Scales Back California Expansion, Announces Layoffs

Gilead Sciences, a prominent player in the pharmaceutical industry, has made significant changes to its expansion plans in California, resulting in layoffs and a strategic shift in its biologics operations. The company's decision reflects broader trends in the industry as pharmaceutical giants continue to optimize their operations and adapt to changing market dynamics.

Oceanside Expansion Halted, Foster City Consolidation Underway

Gilead has abandoned its previously announced plans to expand its biologics facility in Oceanside, California. Instead, the company is opting to consolidate its biologics development and manufacturing teams with their R&D counterparts in Foster City, located over 400 miles north along the California coast.

This strategic realignment has led to the layoff of 36 employees, as disclosed in a recent WARN notice. A Gilead spokesperson explained the rationale behind the move, stating, "This includes transitioning most of our Gilead Biologics roles, most of which are currently in Oceanside, to Foster City. The goal is to have this transition completed by 2027 at the latest."

Workforce Fluctuations and Strategic Diversification

The layoffs come amid fluctuations in Gilead's overall workforce. The company ended 2024 with approximately 17,600 employees, down from 18,000 at the close of 2023. This slight contraction follows a period of rapid growth, during which Gilead's workforce expanded from 13,600 at the end of 2020 to its peak in 2023.

Despite these changes, Gilead remains committed to its strategy of diversifying beyond its traditional stronghold in virology. The company continues to pursue expansion into other therapeutic areas, with a particular focus on oncology. However, this diversification effort has faced challenges, with some oncology candidates failing to meet expectations.

Facility Repurposing and Operational Streamlining

The Oceanside facility, which Gilead will continue to operate, is currently used for commercial retroviral vector production and clinical manufacturing and process development of biologics candidates. Meanwhile, the Foster City location serves as Gilead's headquarters and houses manufacturing and R&D activities, including process chemistry research and formulation development work.

By co-locating its biologics teams with R&D personnel in Foster City, Gilead aims to enhance collaboration and streamline its operations. This move aligns with industry trends towards operational efficiency and the consolidation of research and manufacturing capabilities.