Wave of Layoffs Sweeps Across Pharma and Biotech

The pharmaceutical and biotech sectors have seen a surge in workforce reductions as companies aim to streamline operations and extend cash runways. Notable recent announcements include:

Seres Therapeutics is cutting 25% of its workforce, affecting approximately 26 employees. The move is expected to extend the company's cash runway into the second quarter of 2026 and support the advancement of its lead program, SER-155, for preventing bacterial bloodstream infections in stem cell transplant patients.

Arvinas is implementing a 34% reduction in its workforce, impacting about 131 employees. The restructuring is part of a broader effort to streamline operations and enable efficient progression of the company's portfolio. The cuts are expected to be completed by the end of the second quarter of 2025.

Bristol Myers Squibb continues its cost-cutting measures, announcing 282 layoffs in Lawrenceville, New Jersey. This follows previous rounds of cuts at the same location, bringing the total number of affected employees to 1,223 since April 2024. The layoffs are part of BMS's strategic reorganization aimed at saving $3.5 billion through 2027.

Novo Nordisk is reducing its global headcount by 9,000 people, or 11% of its workforce. The majority of the cuts will occur in Denmark, with the company citing the need to simplify its business and improve decision-making speed.

Strategic Shifts and Pipeline Prioritization

Several companies have announced significant changes to their research and development priorities:

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

Galapagos plans to split into two entities by mid-2025 and cut 40% of its workforce, affecting about 300 employees across its European operations. The company will close its site in France and decrease staff in Belgium. The reorganization will result in an innovative medicines specialist and a cell therapy company that will retain the Galapagos name.

CytomX Therapeutics is cutting 40% of its employees, or 46 people, to focus resources on its clinical programs. The company's top strategic objective for 2025 is the development of CX-2051, an antibody-drug conjugate for advanced metastatic colorectal cancer.

These developments underscore the ongoing challenges faced by the pharmaceutical industry as companies navigate economic pressures, regulatory hurdles, and the need to prioritize promising pipeline candidates. The sector continues to evolve rapidly, with many organizations making difficult decisions to ensure long-term sustainability and growth.