Biopharma Layoffs Surge in 2025 Amid Strategic Shifts and Economic Pressures

Pharmaceutical Industry News Roundup: Layoffs and Restructuring Sweep Sector

In a wave of strategic realignments and cost-cutting measures, numerous pharmaceutical and biotech companies have announced significant workforce reductions and organizational changes in recent months. This industry-wide trend reflects ongoing challenges in drug development, shifting market dynamics, and efforts to streamline operations amid economic pressures.

Major Players Implement Large-Scale Layoffs

Several industry giants have unveiled plans for substantial job cuts as part of broader restructuring initiatives:

Novartis is reducing its U.S. workforce by 427 employees at its East Hanover, New Jersey headquarters, with layoffs occurring from June to October 2025. This follows the company's December 2024 decision to let go of 330 employees and close sites in Germany and Boston acquired from MorphoSys.

Bristol Myers Squibb continues its cost-cutting efforts, announcing an additional $2 billion in savings planned through 2027, on top of an ongoing $1.5 billion reduction program. The company has already laid off hundreds of employees in New Jersey and is closing manufacturing facilities in other locations.

Pfizer is implementing a $6 billion cost savings plan, including workforce reductions across multiple sites. The company recently announced 56 layoffs at its San Diego facility and is closing a manufacturing plant in Pennsylvania, affecting 163 employees.

Merck disclosed plans to eliminate approximately 6,000 jobs globally, representing about 8% of its workforce, as part of a multiyear process to reduce costs by $3 billion.

Biotech Firms Face Restructuring and Pipeline Shifts

Smaller biotech companies are also making difficult decisions to extend cash runways and focus resources on priority programs:

Intellia Therapeutics is reducing its workforce by 27%, affecting about 142 employees, as it discontinues development of NTLA-3001 for alpha-1 antitrypsin deficiency-associated lung disease. The company will focus on advancing NTLA-2002 for hereditary angioedema and nexiguran ziclumeran for transthyretin amyloidosis.

Generation Bio announced a 20% staff reduction in Cambridge, Massachusetts, alongside organizational changes to support clinical development of T cell-directed medicines. The company is pivoting towards siRNA therapeutics for autoimmune diseases.

Cargo Therapeutics disclosed plans to lay off 81 employees, or approximately 50% of its workforce, following the discontinuation of a mid-stage study for its lead CAR-T candidate. The company is reevaluating its pipeline and exploring strategic options.

Industry-Wide Trends and Implications

The widespread layoffs and restructuring efforts across the pharmaceutical and biotech sectors highlight several key trends:

1. Pipeline Prioritization: Companies are increasingly focused on allocating resources to their most promising drug candidates and therapeutic areas, often leading to the discontinuation of earlier-stage or less strategically aligned programs.

2. Operational Efficiency: Many firms are streamlining their organizational structures, consolidating facilities, and reducing overhead costs to improve financial performance and extend cash runways.

3. Market Pressures: Economic uncertainty, challenges in securing funding for early-stage research, and increased competition are driving companies to make difficult decisions about their workforce and research priorities.

4. Strategic Realignment: Some companies are pivoting towards new therapeutic modalities or disease areas, necessitating changes in their talent and resource allocation.

As the industry continues to evolve, these organizational shifts are likely to have lasting impacts on drug development timelines, therapeutic focus areas, and the overall competitive landscape in the pharmaceutical and biotech sectors.