Pharmaceutical Industry Faces Continued Layoffs and Strategic Shifts in 2025

The pharmaceutical industry continues to grapple with significant workforce reductions and strategic realignments in 2025, as companies adapt to challenging market conditions and refocus their priorities. Recent announcements from major players highlight the ongoing trend of cost-cutting measures and pipeline reprioritization across the sector.

Wave of Layoffs Hits Big Pharma and Biotech

Merck has announced plans to cut approximately 6,000 employees globally, affecting around 8% of its workforce. The layoffs are part of a broader $3 billion cost-cutting initiative aimed at channeling savings into R&D and supporting the launch of up to 20 new products.

Moderna is trimming its global workforce by 10%, reducing headcount to under 5,000 employees. CEO Stéphane Bancel described the move as necessary in "a difficult moment for the company," as Moderna seeks to reduce annual operating expenses by about $1.5 billion by 2027.

Other notable workforce reductions include:

• Novartis: Cutting 427 employees at its U.S. headquarters in East Hanover, New Jersey
• Bristol Myers Squibb: Laying off 516 people in Lawrenceville, New Jersey, as part of an ongoing strategic reorganization
• Pfizer: Letting go of 56 employees in San Diego, California
• Biogen: Reducing staff in its research unit, though the exact number was not disclosed

Strategic Shifts and Pipeline Reprioritization

Several companies are making significant changes to their research and development strategies:

Galapagos announced plans to split into two separate 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.

Intellia Therapeutics is reducing its workforce by 27% as part of a reorganization program focused on high-value gene editing programs. The company will discontinue development of its NTLA-3001 therapy for alpha-1 antitrypsin deficiency-associated lung disease.

CytomX Therapeutics is cutting about 40% of its employees to focus resources on its clinical programs, particularly the development of CX-2051 for advanced metastatic colorectal cancer.

Industry Outlook and Market Challenges

The ongoing wave of layoffs and strategic shifts reflects broader challenges facing the pharmaceutical industry. Companies are grappling with the need to reduce costs, streamline operations, and focus on high-potential programs in an increasingly competitive and complex market environment.

As the industry continues to evolve, many companies are placing greater emphasis on innovative technologies such as gene editing, cell therapies, and precision medicine. However, these areas also face hurdles, as evidenced by recent setbacks and pipeline adjustments.

The coming months will likely see further restructuring and strategic realignment across the pharmaceutical landscape as companies strive to position themselves for long-term success in a rapidly changing industry.