Layoffs Continue to Reshape Pharmaceutical Industry Landscape

The pharmaceutical industry continues to face significant workforce reductions as companies restructure operations, reprioritize pipelines, and navigate challenging market conditions. Recent weeks have seen a wave of layoff announcements from major players and smaller biotechs alike, signaling ongoing volatility in the sector.

Big Pharma Trims Workforce Amid Strategic Shifts

Bristol Myers Squibb (BMS) is expanding its previously announced cost-cutting measures, aiming for an additional $2 billion in savings through 2027. This comes on top of an ongoing program targeting $1.5 billion in reductions by the end of 2025. The latest round of cuts will affect 195 employees at BMS's Lawrenceville, New Jersey sites, bringing the total number of layoffs there to nearly 1,330 this year.

Pfizer is also continuing its workforce reduction efforts, eliminating up to 210 manufacturing jobs across sites in Ireland. This follows earlier cuts of 150 employees at its Sanford, North Carolina facility and 60 at its Rocky Mount, North Carolina site. The layoffs are part of Pfizer's broader $3.5 billion cost-cutting initiative announced last October.

Johnson & Johnson and Merck are reportedly trimming staff in China due to growing competition from local rivals. J&J's cuts primarily affect its surgical products division, while Merck is reducing its diabetes unit. Domestically, J&J is laying off 231 employees at its New Brunswick, New Jersey headquarters.

Biotech Firms Face Tough Decisions After Clinical Setbacks

FibroGen announced plans to eliminate 75% of its U.S.-based workforce after two late-stage trials failed to meet primary endpoints. The company is implementing an "immediate and significant" cost reduction plan, terminating its pamrevlumab program and halting related obligations.

Athira Pharma will lay off about 70% of its workforce following disappointing Phase II/III results for its Alzheimer's disease candidate fosgonimeton. The company will focus remaining resources on advancing clinical development of ATH-1105 for neurodegenerative diseases.

Contract Research Organizations Not Immune to Industry Pressures

Charles River Laboratories confirmed it is laying off 3% of its workforce, affecting around 650 people globally. The company cited the need to optimize its footprint and drive greater operating efficiencies in response to current industry trends.

AGC Biologics, a Seattle-based contract development and manufacturing organization, will lay off 95 employees across its Boulder, Colorado and Bothell, Washington locations. The company has not provided specific reasons for the cuts.

Looking Ahead: Industry Continues to Evolve

As pharmaceutical companies navigate a complex landscape of clinical outcomes, regulatory challenges, and market pressures, further workforce adjustments are likely. The industry's focus on operational efficiency and strategic realignment suggests that the current wave of layoffs may continue in the near term as firms adapt to evolving business realities.