Merck to Cut 58 Jobs Amid $3B Cost-Saving Initiative

Pharmaceutical Industry Shaken by Wave of Layoffs and Strategic Shifts

The pharmaceutical and biotechnology sectors are experiencing significant upheaval as companies across the industry announce major workforce reductions and strategic realignments. From industry giants to emerging startups, organizations are grappling with financial pressures, pipeline challenges, and the need to refocus resources on core priorities.

Major Players Implement Sweeping Cuts

Several large pharmaceutical companies have recently disclosed substantial layoffs as part of broader cost-cutting initiatives. Novartis announced it will reduce its U.S. workforce by 427 employees at its headquarters in East Hanover, New Jersey, with the cuts taking place from June to October. This follows the company's decision in December to let go of 330 employees as it closed sites in Germany and Boston acquired from MorphoSys.

Bristol Myers Squibb (BMS) continues its strategic reorganization, revealing plans for an additional $2 billion in savings through 2027 on top of an ongoing program targeting $1.5 billion in cost cuts by the end of 2025. The company is laying off 223 employees in Lawrenceville, New Jersey, bringing the total number of job cuts at that location to 290 this year. BMS CEO Chris Boerner stated the goal is to become a "leaner, more efficient company while investing behind growth brands and promising areas of science."

Merck disclosed it will close its manufacturing site in Pennsylvania, resulting in 163 layoffs to be carried out in three rounds from May 2025 through 2026. This comes as part of a broader $3 billion cost-cutting push announced by CEO Rob Davis, which aims to eliminate approximately 6,000 jobs globally.

Biotech Firms Face Difficult Decisions

Smaller biotechnology companies are also making tough choices to extend cash runways and focus on priority programs. Atara Biotherapeutics announced it will cut about 50% of its workforce, affecting around 80 employees, following the FDA's rejection of its T cell therapy for transplant-related blood cancer. The company expects to complete the layoffs by June.

Cargo Therapeutics revealed plans to lay off 81 employees, or about 50% of its staff, as it discontinues a mid-stage study of its lead CAR-T candidate. The cuts will be effective April 1 and primarily affect the company's Los Angeles manufacturing facility.

Intellia Therapeutics is reducing its workforce by approximately 27%, or about 142 employees, as part of a reorganization to focus on high-value programs. The company will discontinue development of its NTLA-3001 therapy for alpha-1 antitrypsin deficiency-associated lung disease.

Strategic Shifts and Pipeline Reprioritization

Many companies are using layoffs as an opportunity to refocus their efforts on core programs and therapeutic areas. Galapagos announced it will split into two entities by mid-2025 and cut 40% of its workforce, affecting about 300 employees across its European operations. The company plans to close its site in France and decrease staff in Belgium as it separates into an innovative medicines specialist and a cell therapy company.

Repare Therapeutics disclosed plans to cut an unspecified number of staff as it reprioritizes its pipeline to focus on advancing its Phase I clinical programs. The company expects the headcount reductions will help extend its cash runway into mid-2027.

CytomX Therapeutics is laying off about 40% of its employees, or 46 people, to direct capital resources to its clinical programs. The company's top priority for 2025 is the development of CX-2051, an antibody-drug conjugate for advanced metastatic colorectal cancer.

As the pharmaceutical industry continues to evolve, companies are making difficult decisions to streamline operations, reduce costs, and allocate resources to their most promising programs. While these changes bring short-term pain for affected employees, many organizations hope the strategic shifts will position them for long-term success in an increasingly competitive and challenging market.