Widespread Layoffs Continue to Reshape Biopharma Landscape

The trend of workforce reductions that began in late 2024 has accelerated in the second quarter of 2025, with numerous companies announcing significant layoffs:

Moderna announced a 10% reduction in its global workforce, affecting approximately 500 employees. The move is part of the company's ongoing cost efficiency efforts, which aim to reduce annual research and development costs by $1.1 billion by 2027 compared to 2024 levels.

Biogen confirmed plans to lay off an undisclosed number of employees from its research unit. The cuts are part of an effort to "reinvigorate" the company's drug discovery capabilities and create a more agile and efficient organization.

Bristol Myers Squibb revealed plans for an additional $2 billion in cost savings through 2027, on top of its ongoing $1.5 billion cost-cutting program. The expanded initiative is expected to impact contract positions, open roles, and lead to attrition across the company.

Pfizer announced layoffs affecting 56 employees at its San Diego facility, including senior leadership roles. The cuts are part of the company's broader cost reduction efforts, which aim to achieve $6 billion in net cost savings by the end of 2027.

Strategic Shifts and Pipeline Reprioritization

Alongside workforce reductions, many companies are reevaluating their research priorities and pipeline strategies:

Intellia Therapeutics announced a 27% reduction in its workforce as part of a reorganization program. The company will focus its efforts on high-value programs, specifically its gene editors NTLA-2002 for hereditary angioedema and nexiguran ziclumeran for transthyretin amyloidosis. Intellia is discontinuing development of NTLA-3001 for alpha-1 antitrypsin deficiency-associated lung disease.

Galapagos unveiled plans to split into two separate entities by mid-2025: an innovative medicines specialist and a cell therapy company. The reorganization will result in a 40% reduction in the company's workforce, affecting about 300 employees across its European operations. Galapagos will also take back the rights to its pipeline from Gilead and discontinue its small molecules program.

Repare Therapeutics announced an unspecified number of layoffs as it reprioritizes its pipeline to focus on advancing its Phase I clinical programs: RP-1664, a PLK4 inhibitor, and RP-3467, a Pol θ ATPase inhibitor. The company is also exploring partnerships for continued development of other assets in its portfolio.

Impact on Research and Manufacturing Capabilities

The ongoing restructuring efforts are having a significant impact on research and manufacturing capabilities across the industry:

Charles River Laboratories announced the closure of its Durham County, North Carolina facility, resulting in the termination of 31 employees. The company cited lower demand for its products and services as the reason for the closure.

Thermo Fisher Scientific revealed plans to lay off 300 people across its viral vector manufacturing sites in Cambridge and Plainville, Massachusetts. The cuts come just months after the company announced the closure of its Lexington facility and the transfer of programs to Plainville.

Resilience, a contract development and manufacturing organization, announced layoffs affecting 120 employees at its Research Triangle Park gene therapy facility in Durham, North Carolina. The company cited reduced demand in the gene therapy sector as the reason for the workforce reduction.

As the pharmaceutical and biotech industries continue to navigate challenging market conditions and evolving research priorities, further strategic shifts and workforce adjustments are likely in the coming months. Companies will need to balance cost-cutting measures with the need to maintain innovation and advance promising pipeline candidates.