Key Takeaways
- Gilead Sciences is laying off 108 employees at Arcellx’s Redwood City, CA site as part of its $7.8 billion acquisition integration.
- The layoffs are set to begin at the end of June, affecting a portion of Arcellx’s workforce of 209 as of 2025.
- The FDA is expected to decide on the approval of anito-cel for multiple myeloma by December 23, 2026, as part of the acquisition deal.
Acquisition Details and Workforce Changes
Gilead Sciences has finalized its acquisition of CAR-T biotech firm Arcellx for $7.8 billion, leading to the planned layoffs of 108 employees at Arcellx’s facility in Redwood City, California. This decision comes in the wake of a Worker Adjustment and Retraining Notification Act (WARN) alert filed with state officials. The layoffs are scheduled to begin at the end of June and are a common outcome in biopharma mergers as companies seek efficiency.
This move follows Gilead’s acquisition announced earlier this year, where it agreed to pay $115 per Arcellx share in cash. There is potential for shareholders to receive an additional $5 per share if global sales of the CAR-T therapy anito-cel reach $6 billion by the end of 2029.
A Gilead spokesperson reassured that the layoffs were not made lightly and emphasized the company’s intent to support affected staff through this transition. As of Arcellx’s last report at the end of 2025, the workforce comprised 209 full-time employees.
Future Prospects for anito-cel
The FDA is anticipated to render a decision on the regulatory approval of anito-cel for fourth-line multiple myeloma by December 23, 2026. Gilead aims to expedite the development of this therapy, which had previously been partnered with Arcellx.
In conjunction with the acquisition announcement, Cindy Peretti, Gilead’s head of CAR-T development at Kite Pharma, expressed gratitude to the Arcellx team for their expertise and collaboration.
Industry Context
Job cuts following mergers are not exceptional in the biopharma industry. Other notable examples include Amgen’s announcement earlier this year to eliminate 350 roles at Horizon following a substantial acquisition and Novartis’s decision to close two sites and lay off around 330 employees after acquiring MorphoSys for 2.7 billion euros.
This trend reflects the industry’s ongoing adjustments as major players recalibrate their operations post-acquisition to enhance productivity and streamline processes.
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