Pharma and Biotech Layoffs 2025

Waves of targeted job cuts are continuing into 2025 across pharma and biotech as companies respond to pipeline setbacks, patent cliffs and shifting regulatory landscapes.

Reductions to workforces are being propelled by financial pressures and strategic realignments, as companies grapple with revenue losses from patent expirations and decide to redirect their focus.

Meanwhile, an unpredictable regulatory environment and rapid technological advancements—particularly in AI-powered drug discovery — are transforming workflows and prompting shifts in resource and talent allocation.

Here is a roundup of some of the major pharma and biotech layoffs in 2025, which Xtalks will continually update throughout the year.

PHARMA LAYOFFS 2025

Bristol Myers Squibb (BMS) Layoffs 2025

May 5: BMS is laying off 516 employees in Lawrenceville as part of a $2 billion cost-cutting initiative aimed at aligning resources with its evolving portfolio. The new round of layoffs was detailed in a new Worker Adjustment and Retraining Notification Act (WARN) report filed with the state. This is the third round of layoffs BMS has disclosed for Lawrenceville in 2025, bringing that area’s total number of affected employees this year to 806.

March 5: According to a Fierce Pharma report, BMS filed a WARN alert indicating plans to lay off 223 employees at its Lawrenceville, New Jersey, facility. The reductions are scheduled to take effect between May 22 and August 1, 2025. ​This follows a previous layoff announcement in February that involved the elimination of 57 positions in Lawrence Township, New Jersey as part of ongoing restructuring and cost savings initiatives.

February 26: BMS continues its aggressive cost-cutting initiatives as it faces looming patent expirations on blockbuster drugs like blood thinner Eliquis (apixaban) and cancer treatment Opdivo (nivolumab), set to take effect around 2028. The company downsized its New Jersey headcount in February — cutting 67 employees — with plans to eliminate over 2,200 jobs by year’s end as part of a broader effort to save approximately $1.5 billion through 2025. By the end of 2027, BMS said the “strategic productivity initiative” will lead to $2 billion in cost savings. In a company presentation, BMS said the cuts are being “driven by changes in organizational design and efforts to enhance operational efficiency.” It said this would lead to a “more efficient company while investing behind growth brands and promising areas of science.”

In a WARN alert filed February 26, BMS also announced plans to cut 57 jobs at its Redwood City, California, facility. The layoffs are scheduled to take effect by April 22. BMS said the Redwood City site specializes in research focused on the complexities of the tumor microenvironment.

Merck Layoffs 2025

March 18: Merck announced it is closing its manufacturing facility in Pennsylvania and will lay off 163 employees in the process, according to a WARN notice. The layoffs will occur in three phases: the first between May 16 and May 30, the second from June through July 7 and the final round is slated for “sometime in 2026,” per the notice. Merck initially announced plans to shut down the Pennsylvania site in early 2022, estimating at the time that around 300 jobs would be impacted. In 2023, the company confirmed that operations would wind down by the end of 2024, according to media reports.

Novartis Layoffs 2025

March 17: According to a WARN notice filed March 17, Novartis plans to cut 427 jobs from its US workforce. The layoffs, scheduled to occur between June 13 and October 24, will affect employees at the company’s US headquarters in East Hanover, New Jersey. The move follows a previous round of layoffs in December 2024, when Novartis let go of 330 employees as part of its decision to close sites in Germany and Boston — facilities it acquired through its $2.9 billion purchase of MorphoSys. Both locations are expected to shut down completely by the end of this year.

Thermo Fisher Scientific Layoffs 2025

January 31: To usher in the new year, Thermo Fisher announced further layoffs at some of its key sites. These include workforce reductions of 300 employees across its viral vector manufacturing facilities in Cambridge and Plainville, Massachusetts. The announcement came via a Massachusetts WARN report, according to which the layoffs will take effect on March 30. In an email message, Thermo confirmed the layoffs, saying, “In light of recent shifts in customer timelines and utilization needs, we are making strategic business adjustments.”

Biogen Layoffs 2025

January 22: Neuroscience biotech Biogen is set to eliminate an unspecified number of jobs within its research division, a company spokesperson confirmed to Biospace. The layoffs — initially reported by Endpoints News — come as the company’s stock hits a five-year low. The spokesperson explained that the move is part of an effort to “reinvigorate” the drug discovery process and make cuts across its research unit to shift focus to “external opportunities.” The workforce reduction marks one of the first significant strategic decisions by new research head Jane Grogan, who assumed the role in October 2023. Previously the chief scientific officer at Graphite Bio, Grogan was brought on board as part of Biogen’s aggressive cost-cutting initiative announced in July 2023 — a program that initially targeted around 1,000 jobs or roughly 11% of the company’s workforce. More layoffs are anticipated this year as the company aims to reduce operating expenses by $1 billion.

Pfizer Layoffs 2025

Although Pfizer hasn’t announced any layoffs this year, industry watchers are keeping a close eye on the big pharma due to its continuing expense-cutting efforts. As part of its ongoing ‘Cost Realignment Program,’ Pfizer said it is expecting $500 million in savings in 2025, adding to the $4 billion it achieved in 2024. In 2024, the company reduced its headcount across various facilities — including its Sanford, North Carolina, site (laying off 150 employees) and another North Carolina location in Rocky Mount (60 positions) — to optimize operations and bolster short-term earnings. Pfizer is expecting its full-year 2025 adjusted expenses to range between $13.3 billion and $14.3 billion along with $10.7 billion and $11.7 billion in R&D expenses for a total of $24 billion and $26 billion in expenditures this year.

BIOTECH LAYOFFS 2025

Unity Biotechnology (South San Francisco, CA)

May 5: Unity laid off its entire remaining workforce, including CEO Anirvan Ghosh, as part of a cost-cutting initiative. In a news release, the company said it is exploring strategic alternatives such as asset sales, mergers or a full shutdown. Unity, which once drew attention from high-profile investors including Jeff Bezos and Peter Thiel for its anti-aging research into senescent cells, is winding down after failed drug trials and over $510 million in losses. Despite some early promise in eye disease research, no products have reached market. The company, once valued at $700 million and now down to 16 employees, will lay off most staff by May 15 according to an SEC filing, with $3.7 million in severance — over a fifth of its $16.9 million in cash. Some may be rehired as consultants to complete trials.

Biomea (San Carlos, CA)

May 5: Biomea announced a 35% workforce reduction to conserve cash and shift focus away from a leukemia program. Remaining staff will consolidate at the Biomea Innovation Lab Center. The company is prioritizing insulin-deficient patients and combination strategies with GLP-1-based therapies for obesity and diabetes. This includes development efforts and investments in icovamenib, an oral menin inhibitor for diabetes, and BMF-650, a next-generation oral GLP-1 receptor agonist.

Mammoth Biosciences (Brisbane, CA)

May 5: The CRISPR-focused company laid off 24 employees as part of a strategic realignment to advance internal programs and support partnerships. The company aims to ensure it has the right organization to drive forward its internal programs to the clinic, support partnerships, and push forward innovative research to develop new curative therapies.

Tempest Therapeutics (Brisbane, CA)

April 30: In an SEC filing, Tempest announced it is cutting approximately 80% of its workforce (21 out of 26 employees) to extend its cash runway while exploring strategic alternatives, including mergers or acquisitions. The company expects the action to cost about $1.5 million, mainly in the form of severance payments. According to the SEC filing, key staff among those being let go will transition to consulting agreements.

Pliant Therapeutics (South San Francisco, CA)

April 30: Pliant reduced its workforce by 45%, laying off approximately 75 employees, following the suspension of a key clinical trial due to safety concerns. The company suffered a significant loss in market value, dropping from $760 million in early February to about $105 million. The layoffs are aimed at preserving the company’s capability to conduct late-stage clinical trials.

Arvinas (New Haven, CT)

April 30: Arvinas announced plans to lay off 131 employees, including 92 in Connecticut, accounting for roughly one-third of its workforce. CEO John Houston cited ongoing capital market challenges and a need to reevaluate business priorities as reasons for the layoffs, aiming to streamline operations and support the company’s drug development goals. The decision follows the discontinuation of two drug development projects with Pfizer. Pfizer and Arvinas are co-developing the PROTAC ER degrader vepdegestrant, which failed to improve progression-free survival in breast cancer patients, though it showed promise in those with ESR1 mutations. Despite plans to present the Phase III data to regulators, Arvinas has scrapped both a first-line trial combining vepdegestrant with Pfizer’s CDK4 inhibitor atirmociclib and a second-line trial with a CDK4/6 inhibitor.

Relay Therapeutics (Cambridge, MA)

April 4: According to reporting by Endpoint News, Relay Therapeutics is initiating its third round of layoffs within the past year, this time cutting approximately 70 employees. The move likely reduces the Cambridge, Massachusetts–based biotech’s headcount to under 200. As of December 31, Relay employed 261 people, with 80% working in R&D, according to an SEC filing. The layoffs will slash Relay’s annual research budget by roughly 75%. The company is currently gearing up to launch a Phase III registrational trial for its mutant-selective PI3Kα inhibitor in breast cancer in the coming months. In July 2024, the company cut less than 5% of its staff, followed by another round in October that affected around 30 employees — or roughly 10% of the workforce. A company spokesperson said the changes were part of broader efforts to “rationalize tools and streamline teams” for greater efficiency.

Pyxis Oncology (Plymouth, MI)

March 18: Pyxis Oncology is cutting its workforce by 20% as part of ongoing efforts to streamline operations and focus resources on its lead antibody-drug conjugate, micvotabart pelidotin, the company announced March 18. The layoffs will primarily impact staff in preclinical and general and administrative functions. According to its latest 10-K filing, Pyxis now employs 44 full-time staff, with nearly 80% dedicated to R&D. This marks Pyxis’ second major round of layoffs in recent months; in November 2023, shortly after acquiring Apexigen, the company announced a 40% workforce reduction.

Flagship Pioneering’s Apriori Bio (Cambridge, MA) and Empress Therapeutics (Watertown, MA)

March 18: Two biotechs backed by Flagship Pioneering are scaling back their teams. Apriori Bio, which is developing “variant-resilient” vaccines, is laying off 15 employees as it shifts from platform development to advancing its pipeline. A company spokesperson confirmed the layoffs to Fierce Biotech, stating the transition prompted a “redesign of the team structure,” resulting in the workforce reduction.

Meanwhile, Empress Therapeutics is also cutting some of its staff. The company, which uses genetic insights to develop improved small-molecule drugs, is letting go of 23 employees. A spokesperson told BioSpace that the layoffs are intended to “create efficiencies” as Empress prepares to move its first program into clinical development.

Atara Biotherapeutics (Thousand Oaks, CA)

March 3: According to a SEC filing, Atara Biotherapeutics will initiate a second round of layoffs, again cutting about 50% of its remaining staff. The move coincided with the suspension of two CAR T-cell therapy programs, including ATA3219 and ATA3431. In the filing, Atara said the layoffs, which will be completed by June, cost Atara about $3 million. Following an FDA clinical hold on Ebvallo (ATA3219) — Atara’s T-cell therapy approved in Europe for Epstein-Barr virus-positive post-transplant lymphoproliferative disease (EBV+PTLD) — due to unresolved manufacturing concerns, Atara announced plans to reduce its workforce by approximately 50%. The decision is aimed to streamline operations and address the regulatory setbacks. ​Atara attributed the clinical hold to deficiencies identified during an FDA inspection of a third-party manufacturing facility, referencing the complete response letter it received from the agency for Ebvallo.

CRISPR Therapeutics (Zug, Switzerland)

February 28: CRISPR Therapeutics shared plans with Fierce Biotech to lay off an undisclosed number of employees. A company spokesperson confirmed the layoffs but did not provide specific details regarding the number of affected staff or the reasons behind the decision. ​CRISPR announced a strong financial start to the year, reporting approximately $1.9 billion in cash, cash equivalents and marketable securities. The company shared that the continued rollout of Casgevy, a gene-editing therapy developed in collaboration with Vertex Pharmaceuticals, will be a key priority for the company in 2025. CRISPR said global demand for the drug has been robust, with Vertex making significant strides in establishing authorized treatment centers (ATCs) and securing payer coverage. By the end of 2024, over 50 ATCs had been established worldwide, covering all regions where Casgevy is approved. Additionally, more than 50 patients had already undergone at least one cell collection across these regions.

Bio‐Rad Laboratories (Hercules, CA)

February 14: Life science research and diagnostics giant Bio‐Rad announced a 5% workforce reduction — over 350 employees — with the most significant cuts at its Hercules headquarters, along with additional layoffs at its Pleasanton and Richmond locations. The measures come amid a challenging financial year marked by a steep net loss of nearly $1.8 billion, forcing the company to proactively manage its cost structure while attempting to stabilize revenue streams in a competitive diagnostic and research tools market.

Allakos Inc. (San Carlos, CA)

January 27: The Bay Area firm Allakos, once heralded for its potential in treating chronic spontaneous urticaria (chronic hives), reported dismal Phase I trial results for its lead drug, AK006. As a result, the company announced on January 27 a comprehensive “restructuring” that will slash its workforce by 75%, leaving it with roughly 15 employees. The company announced that it will suspend all AK006-related activities across its clinical, manufacturing, research and administrative functions.

Kojin Therapeutics (Boston, MA)

February 13: Facing persistent funding challenges and a stalled pipeline, Boston-based biotech Kojin Therapeutics announced it will be closing its operations altogether, which will affect its 25 employees. The company, which had been working on candidates based on a novel programmed cell death mechanism, noted that the inability to secure sufficient capital to advance its lead candidate has forced a decision to cease operations, marking the end of its development efforts.

Moderna (Cambridge, MA)

February 13: In a bid to reduce operating expenses after reporting a significant revenue decline and higher-than-expected losses, Moderna is cutting about 10% of roles in its digital departments. Approximately 50 positions are being eliminated as the company refocuses on cost efficiency, reducing R&D expenditures while trying to maintain momentum in its vaccine and therapeutic pipelines. Moderna’s share in the COVID-19 vaccine market fell, and its launch of the RSV shot, mRESVIA, was lackluster due to an unfavorable CDC policy that has affected the entire market. At the J.P. Morgan Healthcare conference in January, Moderna CEO Stéphane Bancel announced the company’s plans to cut 2025 cash costs by $1 billion and an additional $500 million in 2026.

Encoded Therapeutics (South San Francisco, CA)

February 13: Genetic medicines biotech Encoded Therapeutics is reducing its workforce by roughly 29% — or about 60 employees — from its approximately 200-person team. The layoffs primarily impact roles in technology and early-stage R&D. This move is designed to extend the company’s cash runway through 2026, allowing it to hit key development milestones for its lead gene therapy candidate, ETX101, which is being developed for Dravet syndrome. The cuts will also support company operations and the Investigational New Drug (IND)/ Clinical Trial Application (CTA) for another candidate, ETX201.

X4 Pharmaceuticals (Boston, MA)

February 6: Boston-based X4 Pharmaceuticals, known for its recently FDA-approved CXCR4 antagonist mavorixafor (marketed under the name Xolremdi) for treating warts, hypogammaglobulinemia, immunodeficiency and myelokathexis (WHIM) syndrome, announced February 6 that it is scaling back its operations by laying off 43 employees, which is around 30% of its workforce. The cut comes as the company pauses preclinical candidates to concentrate on its commercial product and streamline operations to save between $30 million and $35 million.

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