Biopharma Industry Faces Significant Workforce Restructuring in Q3 2025

The pharmaceutical industry has witnessed a substantial increase in layoffs during the third quarter of 2025, with major companies implementing large-scale restructuring plans. This surge in workforce reductions represents a significant shift in the industry landscape, driven by cost-cutting measures and strategic realignments.

Q3 Layoffs Spike 280% Year-Over-Year

The third quarter of 2025 has proven to be the most challenging period for biopharma employees this year, with layoffs affecting over 23,000 workers. This figure marks a staggering 280% increase compared to the same period in 2024. The dramatic rise in job cuts is primarily attributed to major restructuring efforts by industry giants CSL, Merck, and Novo Nordisk, which collectively account for approximately 19,350 of the total layoffs.

Merck announced plans to reduce its global workforce by about 6,000 employees, representing 8% of its staff, as part of a multi-year cost-cutting initiative aimed at saving $3 billion. The company intends to redirect these savings towards research and development efforts and support the launch of up to 20 new products.

CSL revealed its decision to part ways with 15% of its workforce, potentially affecting around 4,350 employees. This restructuring is designed to streamline operations and enhance clinical and commercial performance, with expected annualized savings of $500 million to $550 million over the next three years.

Novo Nordisk disclosed plans to cut approximately 9,000 jobs globally, equating to 11% of its total headcount. The company aims to simplify its business structure, improve decision-making speed, and generate around $1.25 billion in annualized savings through 2026. These savings are expected to be reinvested in growth opportunities within the diabetes and obesity sectors.

Geographic Impact and Industry-Wide Trends

The workforce reductions have had a particularly pronounced effect on the biopharmaceutical hubs of California and Massachusetts. These two states reported the highest number of companies implementing or projecting layoffs, with 14 in California and 16 in Massachusetts. The cuts have impacted multiple cities across these states, with nine affected in California and eight in Massachusetts.

Notable layoffs in specific locations include Sarepta's reduction of 392 employees across Andover, Cambridge, and Bedford, Massachusetts, as part of a larger 500-employee downsizing effort. Bristol Myers Squibb announced the layoff of 282 employees in Lawrenceville, New Jersey, scheduled to occur between December 2025 and March 2026. Additionally, Novo Nordisk plans to let go of 263 staff members in Plainsboro, New Jersey, effective December 2025.

The trend of workforce reductions extends beyond these major players, with other significant cuts reported at Sarepta, Moderna, and Lundbeck. Moderna announced a 10% reduction in its workforce, potentially affecting around 550 employees, while Lundbeck revealed plans to withdraw from 27 markets, impacting 602 employees.

As the industry moves into the fourth quarter of 2025, early indicators suggest that layoffs may continue, albeit at a potentially slower pace. In the first two weeks of October alone, six companies have already announced or projected cuts totaling approximately 1,000 employees. This trend, coupled with the ongoing restructuring efforts of major pharmaceutical firms, indicates that the industry may continue to face significant workforce challenges in the near future.