Key Takeaways
- 2025 has seen 190 layoff rounds in biopharma, nearly matching 2024’s total of 192, with expectations of up to 252 rounds by year-end.
- Major cuts in workforce include Novo Nordisk’s 9,000 layoffs and Merck’s reduction of 6,000 employees, part of large cost-saving initiatives.
- The gene therapy sector faces ongoing scrutiny, affecting companies like Sarepta Therapeutics and Biogen, leading to additional workforce reductions.
Industry Layoffs Continue
The biopharmaceutical industry is experiencing a significant wave of layoffs, with a total of 62 rounds reported in the latest quarter, slightly lower than previous quarters. The total for 2025 so far stands at 190 layoff rounds, suggesting a possible increase to 252 by year-end, which reflects a concerning trend in workforce reductions.
Notably, large pharmaceutical companies are driving many of these layoffs. In September, Novo Nordisk announced it would cut 9,000 jobs, primarily in Denmark, a move aimed at saving $1.3 billion annually by 2026 under new leadership. Merck & Co. is also undertaking drastic measures, aiming for $3 billion in savings by 2027, resulting in a layoff of 6,000 employees, or 8% of its workforce.
Sarepta Therapeutics, while not a Big Pharma, has made headlines for significant layoffs—500 employees or 36% of its staff—due to a strategic restructuring focused on prioritizing siRNA programs amid safety concerns regarding its gene therapy, Elevidys. This incident has raised broader questions about the gene therapy landscape, which is plagued by investor divestment and regulatory scrutiny.
In late September, Biogen halted all gene therapy projects involving adeno-associated virus capsids, leading to additional layoffs, as it reallocates resources toward more promising treatment modalities. The cell therapy sector is not exempt from difficulties; one leading biotech fundraising company announced a workforce reduction alongside Amy’s Bio, which was forced to close after financial setbacks.
Recent government actions also impact the landscape. The Department of Health and Human Services announced it would stop funding mRNA vaccine research, reflecting ongoing hesitation surrounding vaccine initiatives. Such uncertainty has already prompted layoffs at companies like Moderna and NextRNA Therapeutics.
Additionally, significant layoffs are occurring within government organizations. As a result of a recent government shutdown, 32,460 employees within HHS face furloughs. This adds to the ongoing trend where federal worker resignations have reached more than 150,000 across all departments.
Overall, the biopharmaceutical and related sectors are facing tumultuous times with job reductions and increased scrutiny, raising concerns about the future of innovation and workforce stability in these crucial areas of healthcare.
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