Biopharma Job Market Continues to Face Challenges, Recovery Not Expected Until 2027

The pharmaceutical and biotech industries are grappling with ongoing employment challenges, as recent data and industry sentiment suggest a prolonged period of job market instability. A recent BioSpace LinkedIn poll reveals a pessimistic outlook among biopharma professionals, with nearly half of respondents predicting that the job market won't recover until 2027 or later.

Layoffs and Hiring Slowdown Persist

The biopharma sector has seen a continued trend of layoffs and reduced hiring activity. In May, Teva Pharmaceuticals announced cuts affecting 2,893 employees worldwide, while Bristol Myers Squibb laid off 516 people in Lawrenceville, New Jersey. These recent layoffs have already surpassed April's figures, with approximately 3,400 jobs lost between just two companies.

According to BioSpace tallies, April saw 1,357 biopharma professionals laid off, marking the second-highest monthly total in 2025. Although this represents a 22% year-over-year decrease, the numbers remain concerning for industry workers.

Ira Leiderman, healthcare managing director at investment banking firm Cassel Salpeter & Co., noted that companies are "leaning down" and focused on managing expenditures. "People need to husband their cash, manage their expenditures, and unfortunately, it's costing people their jobs and their livelihoods," Leiderman stated.

Factors Contributing to Market Pessimism

Several factors are fueling the skepticism surrounding job market recovery:

1. Venture capital funding dropped 20% year-over-year in the first quarter.
2. The U.S. Bureau of Labor Statistics reported that job openings were little changed in March and decreased by 901,000 over the year.
3. Job postings on the BioSpace website were up just 1% month-over-month and down 8% year-over-year in April.
4. Ongoing concerns about massive Department of Health and Human Services layoffs and looming pharma tariffs.

Pierre Michel Baez Ortiz, a biopharma professional, commented on the poll, noting that Maryland hasn't recovered from the crash after the pandemic-era money infusion ran out. "Over three years and the region is unstable as hell," he wrote. "There's zero job security and some people in my network have been unemployed for more than a year, a few for several years."

Industry Professionals Face Difficult Choices

The prolonged job market instability is forcing biopharma professionals to consider alternative options. Leiderman suggested that mid-level and senior-level professionals might leave the country for opportunities in Europe, potentially leading to brain drain. Additionally, some may opt to change industries altogether.

For those facing extended periods of unemployment, the decision to leave the U.S. or transition to a different sector is becoming increasingly necessary. As Leiderman pointed out, "People have to pay their bills, right? They've got to make a mortgage payment. They've got to put food on the table for their kids. You've got to live the dream, but you've got to also be realistic at some point."

While some industry professionals, like Ricardo Azedo, remain hopeful for a quicker recovery, the overall sentiment suggests a cautious approach to job market expectations in the coming years.