Thermo Fisher Scientific Continues Cost-Cutting Measures with New Layoffs in California

Thermo Fisher Scientific, a leading contract development and manufacturing organization (CDMO), is set to implement another round of layoffs at its Carlsbad, California facilities. This move is part of the company's ongoing cost-cutting strategy as it navigates the post-pandemic pharmaceutical landscape.

Latest Layoffs in Carlsbad

According to a Worker Adjustment and Retraining Notification (WARN) notice filed with the State of California, Thermo Fisher will lay off approximately 85 employees across its locations on Newton Drive and Van Allen Way in Carlsbad. The job cuts are expected to take effect on September 15, 2025.

This latest round of layoffs follows a series of workforce reductions in the San Diego County area. Between July 1, 2023, and June 30, 2024, Thermo Fisher dismissed a total of 172 employees across its Carlsbad operations. In April 2024, the company confirmed the layoff of 74 employees from the plasmids manufacturing laboratory at its Carlsbad campus.

Broader Cost-Cutting Initiatives

The Carlsbad layoffs are part of a larger restructuring effort by Thermo Fisher. In its most recent quarterly securities filing, the company reported accruing restructuring costs and other expenses related to "charges for headcount reductions and facility consolidations" during the first half of 2025.

Thermo Fisher anticipates additional charges of approximately $140 million, primarily in 2025, for restructuring actions, mainly in its laboratory products and biopharma services segment. The company also expects to identify further cost-cutting measures in future periods.

These efforts extend beyond California. In February 2025, Thermo Fisher announced the layoff of 300 workers at its viral vector manufacturing facilities in Cambridge and Plainville, Massachusetts.

Financial Performance and Industry Context

Thermo Fisher's cost-cutting measures come as the company works to regain momentum in revenue growth following the COVID-19 pandemic. The company's total revenue for 2024 was $42.88 billion, remaining flat compared to 2023. However, recent quarters have shown signs of improvement, with a 5% year-over-year increase in Q4 2024 and a 3% year-over-year revenue increase in Q2 2025, reaching $10.85 billion.

The pharmaceutical industry, particularly CDMOs like Thermo Fisher, experienced significant growth during the height of the COVID-19 pandemic. Thermo Fisher increased its workforce from 80,000 to 130,000 employees in 2021, partly through acquisitions. However, as the pandemic situation became endemic, maintaining that level of growth has proven challenging, leading to the current wave of restructuring and cost-cutting measures.