Pharmaceutical Industry Faces Widespread Layoffs Amid Strategic Shifts and Financial Pressures

The pharmaceutical and biotech sectors are experiencing a wave of workforce reductions as companies reevaluate priorities, streamline operations, and adapt to challenging market conditions. Recent months have seen numerous layoff announcements across the industry, affecting thousands of employees.

Major Players Implement Cost-Cutting Measures

Several large pharmaceutical companies have announced significant staff cuts as part of broader restructuring efforts. Bristol Myers Squibb continues its strategic reorganization, targeting an additional $2 billion in savings through 2027 on top of an ongoing $1.5 billion cost reduction program. The company has laid off over 800 employees in Lawrenceville, New Jersey since April 2024, with more cuts expected across multiple sites.

Novartis is reducing its U.S. workforce by 427 employees at its East Hanover, New Jersey headquarters between June and October 2025. This follows the closure of sites in Germany and Boston acquired from MorphoSys, affecting 330 jobs. The Swiss pharma giant aims to streamline operations while continuing to pursue strategic acquisitions.

Biogen confirmed layoffs within its research unit as part of efforts to "reinvigorate" its drug discovery capabilities. The exact number of affected employees was not disclosed, but the move comes amid a five-year low in the company's stock price and an ongoing cost-cutting initiative targeting $1 billion in savings.

Biotech Firms Face Difficult Decisions

Smaller biotech companies are also making tough choices in response to funding challenges and clinical setbacks. Intellia Therapeutics announced a 27% workforce reduction, affecting approximately 142 employees, as it discontinues development of its NTLA-3001 therapy and focuses resources on high-value programs. The restructuring aims to extend the company's cash runway into the first half of 2027.

IGM Biosciences is cutting 73% of its workforce, or about 100 employees, and halting development of two autoimmune drug candidates. The drastic move comes as the company explores strategic alternatives to maximize shareholder value.

Atara Biotherapeutics disclosed plans to reduce its workforce by about 50% following the FDA's rejection of its T cell therapy for transplant-related blood cancer. The cuts, affecting around 80 employees, are expected to be completed by June.

Strategic Shifts and Pipeline Reprioritization

Many companies are using layoffs as part of broader strategic realignments. Galapagos announced plans to split into two entities by mid-2025, cutting 40% of its workforce in the process. The reorganization will result in the closure of its French site and staff reductions in Belgium, affecting about 300 employees.

CytomX Therapeutics is laying off 40% of its staff, or 46 employees, to focus resources on clinical programs. The company aims to advance its antibody-drug conjugate CX-2051 for colorectal cancer while reevaluating plans for other pipeline assets.

Repare Therapeutics is cutting an unspecified number of employees as it reprioritizes its pipeline to focus on two Phase I clinical programs. The move is expected to extend the company's cash runway into mid-2027.

As the pharmaceutical industry continues to navigate economic headwinds and evolving market dynamics, further workforce reductions and strategic realignments are likely. Companies are increasingly focused on optimizing resource allocation, advancing high-potential assets, and maintaining financial flexibility in an uncertain environment.