Layoffs Continue to Reshape Biopharma Landscape in 2025

The pharmaceutical and biotech industries continue to face significant headwinds in 2025, with numerous companies announcing layoffs and restructuring efforts. These moves come as firms grapple with pipeline setbacks, shifting market dynamics, and ongoing economic pressures.

Major Players Trim Workforce Amid Strategic Shifts

Several industry giants have announced substantial workforce reductions in recent months. Novartis disclosed plans to lay off nearly 430 employees from its headquarters in East Hanover, New Jersey, with the cuts occurring 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 workers.

Bristol Myers Squibb (BMS) is also continuing its strategic reorganization, targeting an additional $2 billion in savings through 2027. This comes on top of an ongoing program aimed at $1.5 billion in cost cuts by the end of 2025. The latest round of layoffs at BMS's Lawrenceville, New Jersey, site will impact 223 employees between May and August.

Pfizer, facing declining COVID-19 product sales, is eliminating up to 210 manufacturing jobs across sites in Ireland. This follows earlier cuts at U.S. facilities, including 150 positions in Sanford, North Carolina, and 60 in Rocky Mount, North Carolina. The company had previously announced plans to reduce costs by $3.5 billion, with additional cuts of $1.5 billion targeted over the coming years.

Biotechs Face Tough Decisions Following Trial Setbacks

Smaller biotechs have not been immune to the challenging environment, with many forced to make difficult decisions following clinical trial disappointments.

FibroGen announced it would eliminate 75% of its U.S.-based workforce after two late-stage trials for its experimental drug pamrevlumab failed to meet primary survival endpoints in pancreatic cancer. The cuts will affect a significant portion of the company's 475 global employees.

Athira Pharma revealed plans to lay off about 70% of its workforce, or 49 positions, following the failure of its Alzheimer's disease candidate fosgonimeton in a Phase II/III trial. The company will now focus resources on advancing clinical development of ATH-1105 for neurodegenerative diseases.

Gene and Cell Therapy Sector Sees Consolidation

The gene and cell therapy space has also seen notable restructuring efforts. uniQure announced it would lay off 65% of its employees, totaling 300 people, including its Chief Operating Officer. The move came a month after the company agreed to sell its Lexington, Massachusetts manufacturing facility.

Caribou Biosciences cut 21 people, or 12% of its workforce, as it discontinued preclinical development of allogeneic CAR-NK therapies to focus resources on its allogeneic CAR-T cell therapy platform.

Industry Outlook Remains Uncertain

As layoffs and restructuring efforts continue across the biopharma sector, the industry faces an uncertain future. Companies are increasingly focused on streamlining operations, prioritizing key pipeline assets, and extending cash runways in the face of economic headwinds and scientific challenges.

While some firms view these moves as necessary steps to ensure long-term sustainability and competitiveness, the human toll of widespread job losses cannot be ignored. As the industry navigates this period of transition, the impact on drug development timelines, innovation, and patient access to new therapies remains to be seen.