Biopharma Job Market Contracts in Q2 2025 as Layoffs Surge

The pharmaceutical and biotechnology industry faced significant headwinds in the second quarter of 2025, with job postings declining and layoffs increasing across the sector. This trend marks the third consecutive quarter of contraction in the biopharma job market, reflecting broader economic pressures and industry-specific challenges.

Job Market Decline Continues

According to data from BioSpace, job postings in the biopharma sector decreased by 15% year-over-year in Q2 2025. Concurrently, job applications surged by 79%, indicating increased competition for fewer available positions. This trend aligns with the broader U.S. labor market, where private employers shed 33,000 jobs in June alone, as reported by ADP.

The decline in biopharma job postings is part of a longer-term trend, with Q2 2025 marking the third consecutive quarterly decrease. Notably, the number of jobs available in Q2 was lower than in any quarter of 2024, underscoring the sustained nature of this contraction.

Layoffs Intensify Across the Industry

The challenging job market was further exacerbated by a significant increase in layoffs. During Q2 2025, 62 biotechnology and pharmaceutical companies laid off a total of 7,426 employees, representing a 38% year-over-year increase in affected workers and nearly doubling the number of companies implementing workforce reductions compared to the same period in 2024.

Key layoff events in Q2 included:

• Teva Pharmaceuticals announced the largest single layoff, with plans to cut approximately 2,900 employees worldwide by 2027.
• Bristol Myers Squibb implemented multiple layoff rounds, totaling 717 employees, as part of a strategic reorganization aimed at saving $3.5 billion through 2027.
• Several companies, including iTeos Therapeutics, Octagon Therapeutics, Third Harmonic Bio, and Vincerx Pharma, announced complete shutdowns of operations.

Factors Contributing to Market Contraction

The contraction in the biopharma job market can be attributed to several factors:

1. Economic pressures driving cost-cutting measures across the industry.
2. Strategic reorganizations by major pharmaceutical companies.
3. Closure of smaller biotechnology firms unable to secure additional funding.
4. Broader cooling of the U.S. labor market, as noted by Wells Fargo economists.

Additionally, the biopharma sector faced increased pressure from government workforce reductions, particularly at the Department of Health and Human Services. While some affected employees have been rehired, the overall impact has contributed to a more competitive job market for biopharma professionals.

As the industry navigates these challenges, the ability of laid-off workers to secure new employment has become increasingly difficult. Wells Fargo economists have noted a gradual increase in jobless claims since January, along with rising continuing claims for unemployment insurance, indicating prolonged periods of unemployment for affected workers.