GSK, Sail, BioNTech Announce Second Layoffs in 2025 Amid Restructuring

Pharmaceutical Industry Layoffs Continue Amid Strategic Shifts and Financial Pressures

The pharmaceutical and biotech sectors continue to face significant headwinds in 2025, with numerous companies announcing workforce reductions and strategic realignments. This wave of layoffs reflects ongoing challenges in drug development, market pressures, and the need for operational efficiency in an increasingly competitive landscape.

Major Players Trim Workforce Amid Restructuring Efforts

Several industry giants have announced substantial job cuts as part of broader restructuring initiatives. Bristol Myers Squibb (BMS) is leading the pack with plans to reduce its workforce by 2,200 employees by the end of 2025, targeting $3.5 billion in savings through 2027. The company's strategic reorganization has resulted in layoffs across multiple locations, including 223 employees in Lawrenceville, New Jersey.

Novartis is not far behind, with 427 employees set to be laid off from its U.S. headquarters in East Hanover, New Jersey. This move comes on the heels of previous cuts that affected 330 employees in Germany and Boston. The Swiss pharma giant cites the need for operational efficiency as it continues to pursue bolt-on acquisitions to drive growth.

Gilead Sciences has also joined the fray, announcing the layoff of 149 employees in Foster City, California, primarily affecting scientific and technical services staff. The company is realigning its biologics development and manufacturing teams with their R&D counterparts to streamline operations.

Biotech Firms Face Tough Decisions Amid Funding Challenges

Smaller biotech companies are feeling the squeeze as well, with many forced to make difficult decisions to preserve cash and extend their runways. Intellia Therapeutics, a leader in CRISPR gene editing, announced a 27% reduction in its workforce as part of a reorganization program focused on high-value programs. The company will discontinue development of NTLA-3001 for alpha-1 antitrypsin deficiency-associated lung disease and concentrate on its lead candidates for hereditary angioedema and transthyretin amyloidosis.

CytomX Therapeutics is cutting approximately 40% of its staff, affecting 46 employees, to prioritize its clinical programs and create financial flexibility. The company is focusing on the development of CX-2051, an antibody-drug conjugate for advanced metastatic colorectal cancer, while reassessing its partnership with Amgen on the CX-904 T-cell-engaging bispecific antibody program.

Galapagos, a Belgian biotech, announced a dramatic restructuring that will see the company split into two entities and cut 40% of its workforce, affecting about 300 employees across its European operations. The move includes closing its site in France and reducing staff in Belgium as the company pivots to focus on cell therapies and innovative medicines.

Industry-wide Trends and Future Outlook

The current wave of layoffs reflects broader trends in the pharmaceutical and biotech industries. Companies are increasingly focused on streamlining operations, prioritizing high-potential pipeline assets, and adapting to a challenging funding environment. Many firms are reevaluating their research and development strategies, with a growing emphasis on targeted therapies and emerging modalities such as cell and gene therapies.

As the industry continues to evolve, companies that can successfully navigate these challenges while maintaining innovation and operational efficiency are likely to emerge stronger. However, the ongoing restructuring efforts highlight the volatile nature of drug development and the constant need for adaptation in the face of scientific, regulatory, and market pressures.