Biotech Industry Faces Continued Downsizing Amid 2025 Market Challenges

Pharmaceutical Industry News Update: Layoffs and Restructuring Sweep Sector Amid Cost-Cutting Initiatives

Major pharmaceutical and biotech companies are implementing significant workforce reductions and restructuring efforts as the industry grapples with economic pressures and strategic shifts. This wave of layoffs affects thousands of employees across multiple organizations, reflecting broader trends of cost-cutting and pipeline reprioritization.

Biogen Trims Research Unit Amid Stock Struggles

Biogen has announced an undisclosed number of layoffs within its research division as part of efforts to "reinvigorate" its drug discovery capabilities. The move comes as the company's stock languishes at a five-year low, prompting a push for greater agility and efficiency in its R&D operations. This restructuring follows on the heels of a broader cost-cutting program announced in July 2023, which targeted approximately 1,000 jobs—roughly 11% of Biogen's global workforce.

The latest cuts are among the first major strategic decisions made by new research head Jane Grogan, who joined Biogen in October 2023. The company aims to streamline its research efforts to "deliver more viable drug candidates to the clinic," according to a spokesperson. These changes are part of Biogen's ongoing initiative to reduce operating expenses by $1 billion.

Bristol Myers Squibb Expands Cost-Cutting Measures

Bristol Myers Squibb (BMS) is intensifying its strategic reorganization, announcing plans for an additional $2 billion in savings through 2027. This comes on top of an existing program targeting $1.5 billion in cost reductions by the end of 2025. The expanded initiative will involve further layoffs, including contract positions and open roles, as well as efforts to enhance operational efficiency.

The pharmaceutical giant has already implemented significant workforce reductions, with over 1,300 employees affected in its Lawrenceville, New Jersey, operations since April 2024. The latest round of cuts will impact 223 employees at this location, effective between May 22 and August 1, 2025.

BMS CEO Chris Boerner emphasized the company's goal of becoming a "leaner, more efficient company while investing behind growth brands and promising areas of science." The restructuring has led to the termination of partnerships with companies like Immatics and Century Therapeutics as part of BMS's portfolio prioritization efforts.

Biotech Sector Faces Widespread Downsizing

Numerous biotech companies are also implementing substantial workforce reductions:

• Intellia Therapeutics announced a 27% reduction in its workforce, affecting approximately 142 employees. The gene-editing company is refocusing its efforts on high-value programs, particularly its investigational editors NTLA-2002 for hereditary angioedema and nexiguran ziclumeran for transthyretin amyloidosis.

• IGM Biosciences is cutting 73% of its workforce, eliminating 100 positions, and halting development of two autoimmune drug candidates. The restructuring aims to extend the company's cash runway and refocus its pipeline.

• Galapagos plans to split into two entities by mid-2025 and reduce its workforce by 40%, affecting about 300 employees across its European operations. The reorganization includes closing its site in France and decreasing staff in Belgium.

• CytomX Therapeutics is reducing its workforce by 40%, laying off 46 employees to focus resources on its clinical programs, particularly the development of CX-2051 for advanced metastatic colorectal cancer.

These layoffs reflect ongoing challenges in the biotech sector, including difficult market conditions, the need to extend cash runways, and strategic shifts in research and development priorities. As companies navigate these headwinds, the industry landscape continues to evolve, with a heightened focus on operational efficiency and high-potential drug candidates.