Top 10 Biggest Pharma and Biotech Layoffs in 2024

In 2024, there have been significant pharma and biotech layoffs as companies restructure to navigate financial challenges and shifting market dynamics. Major players like Bayer, Pfizer and Takeda Pharmaceuticals are among those that have been slashing thousands of jobs.

1. Bristol Myers Squibb (BMS)

In March, BMS announced layoffs of 2,220 employees, primarily targeting roles across various US locations. This decision aimed to streamline the company’s focus amid changing demands and competition in the sector. The layoffs are part of BMS’s plan to focus on core therapeutic areas and ensure that resources align closely with long-term goals​.

2. Takeda

Takeda has cut over 1,100 jobs across the US and Europe, including facility closures and reductions in R&D roles. This includes 495 people at its Cambridge, Massachusetts headquarters and 146 at its Lexington campus in the same state. Takeda has forecasted continued financial pressure but is banking on new drug trials to stabilize its position​.

The decision came as Takeda faces revenue declines following the loss of exclusivity for Vyvanse (lisdexamfetamine), its flagship ADHD medication. Takeda’s $900 million restructuring plan, spread over several years, highlights the significant restructuring steps aimed at long-term sustainability.

3. Bayer

Bayer is undergoing major organizational restructuring under CEO Bill Anderson. As part of a strategy to streamline operations and achieve cost savings, Bayer has laid off approximately 1,600 employees globally, with cuts primarily in management. This is part of a broader effort to save $540 million by the end of 2024 and $2.16 billion by 2026. These layoffs have affected locations like Bayer’s New Jersey headquarters and other facilities across the US and Europe.

Bayer’s cuts are part of a broader trend where large pharmaceutical companies are trimming roles to focus on high-value projects and boost operational efficiency. The company is also planning to cut managerial positions in Europe and Asia. It has already cut about 40 percent of its managerial positions in the US, with reductions in Canada, Mexico, Italy, Australia and the Nordic countries as well.

The layoffs come after Bayer’s second-quarter earnings report showed that the company generated $12.15 billion in revenue, slightly surpassing Vara Research’s forecasted revenue of $12.05 billion. Moreover, Anderson said the consumer health division had “returned to growth,” with sales increasing 5.3 percent to $1.59 billion.

4. Pfizer

Pfizer, facing decreased demand for its COVID-19 products, has implemented widespread cost-cutting measures, targeting its $4 billion savings plan that it announced last year by the end of 2024. This has included laying off hundreds of employees, with cuts across facilities in New York, Washington and California, totaling over 750 employees.

Additionally, Pfizer’s reorganization follows earlier layoffs in Ireland and at other global manufacturing sites​. The Irish Times reported that those layoffs accounted for just under five percent of the company’s manufacturing workforce in the country. And now, the company is planning to axe an additional 200 or so jobs in Ireland.

In May, Pfizer announced an additional $1.5 billion in cost cuts by the end of 2027. In a Securities and Exchange Commission (SEC) document, the company said the new round of cuts is the “first phase” of a multi-year program designed to “reduce our cost of goods sold.” The program will involve restructuring its network, implementing operational changes to enhance efficiency and refining its product offerings.

5. Genentech

Genentech, a Roche subsidiary, laid off around 436 employees in total at its South San Francisco headquarters. These layoffs, which represented approximately three percent of the company’s workforce, were a response to changing market demands and internal budget realignments. The company communicated its second round of layoffs, letting go of 93 people, in a Worker Adjustment and Retraining Notification (WARN) filing.

The most recent layoff plan came after news in early August that Genentech was shuttering its cancer immunology group as the company reprioritized investments in cancer research. A Genentech spokesperson told Endpoint News that the decision was driven by “shifts in the science of immuno-oncology.” Genentech said it will merge R&D activities in that wing with its molecular oncology programs to create a single but broader cancer effort.

6. Amylyx

Amylyx Pharmaceuticals faced one of the toughest layoffs in the industry, cutting about 70 percent of its workforce after the failure of its amyotrophic lateral sclerosis (ALS) drug Relyvrio (sodium phenylbutyrate and taurursodiol) in a confirmatory clinical trial. This setback not only halted the company’s immediate plans but also forced it to scale back operations drastically. This case highlights the risks inherent in biotech, where companies often depend heavily on the success of one or two key therapies.

7. Novartis

Novartis, which has been implementing a multi-year restructuring plan since 2022, announced layoffs impacting approximately 680 positions in its project development sector, affecting 440 roles in Switzerland and 240 in the US. The restructuring could ultimately affect up to 8,000 of its 78,000 employees globally. ​At the same time, as part of the changes, the company said it will be adding positions over the next two to three years, which will amount to an overall net reduction of one to two percent at a global level.

8. Perrigo

Perrigo announced a six percent reduction in its workforce, affecting around 550 employees globally. The cuts are a part of the company’s “Project Energize,” a three-year strategy launched in February focused on enhancing organizational agility and ensuring sustainable growth. The over-the-counter (OTC) self-care specialist aims to deliver $140 million to $170 million in annual savings by 2026 through staff reductions and restructuring. Perrigo’s adjustments echo the wider need for companies to adapt to tighter budgets while focusing on core offerings and high-demand markets​.

9. Johnson & Johnson (J&J)

J&J is laying off 231 employees at its New Brunswick, New Jersey, headquarters effective December 27, according to a WARN notice from the company this month. The company did not formally announce its layoffs or the reasons for them. However, according to Fierce Pharma, a J&J spokesperson’s emailed statement noted that to continue meeting patient needs worldwide, the organization must adapt and evolve “in the midst of a complex and rapidly changing environment.”

At the same time, in fact on the same day as the announcement of the layoffs in New Jersey, J&J also announced it will be adding 420 jobs as part of its $2 billion investment into expanding its North Carolina plant.

10. BioMarin

Rare disease biotech BioMarin recently laid off 225 employees — approximately seven percent of its workforce — as part of a strategic redesign to focus on its hemophilia A gene therapy, Roctavian, and conserve cash reserves.

Other mid-sized companies like BioMarin and Peggio are also grappling with substantial cost pressures, with some even taking steps to reimagine their operations for future resilience.

Emergent BioSolutions, a biopharma and contract development and manufacturing organization (CDMO), announced plans to downsize by about 300 positions, coinciding with the planned closures of its Baltimore-Bayview drug substance facility and the Rockville drug product facility in Maryland.

CDMO Catalent has also been affected by restructuring, having announced 1,100 layoffs in December last year due to falling COVID-19-related revenue. The restructuring aimed to stabilize its finances, further supported by future glucagon-like peptide-1 (GLP-1) production revenues. Catalent is also in the process of being acquired by Novo Nordisk’s parent company for $16.5 billion.

What’s Driving the Pharma and Biotech Layoffs?

The reasons behind these layoffs are diverse but often intersect around financial realignment, efficiency improvements and market repositioning:

• Financial pressure and patent expirations: Takeda’s loss of exclusivity for Vyvanse and Pfizer’s COVID-19 demand drop are examples of how product demand shifts directly impact job security. With fewer sales from blockbuster drugs, these companies need to streamline.
• Operational restructuring: Bayer’s cost-saving strategy and Novartis’s global restructuring showcase an industry-wide pivot toward leaner operations. Many companies are refocusing on high-value projects while scaling down investments in less profitable areas.
• Clinical trial failures: Amylyx’s large-scale layoffs underscore the heavy dependence some companies have on a single product. When clinical trials fail, particularly in smaller companies, the repercussions often include significant layoffs.
• Geographic and role-specific cuts: In the US, Massachusetts and California have been particularly impacted by biopharma layoffs. Globally, regions like Switzerland and parts of Germany are seeing similar trends due to consolidations and project reallocation​

Despite the major layoffs, industry insiders are cautiously optimistic about the rest of 2024. Improved market conditions and a potential uptick in initial public offering (IPO) activity might bring new funding to biopharma, enabling companies to reinvest in staffing. However, experts warn that without strategic adjustments in hiring practices, the industry may face another cycle of layoffs if inflated staffing levels outpace actual market needs.

While the biopharma industry is no stranger to periodic workforce reductions, the scale and frequency of layoffs in 2024 underscore a shift toward sustainability and strategic alignment over rapid growth. For job seekers, the market may recover in the coming months, but companies and employees alike must brace for an industry in constant evolution.

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