The biopharma sector is experiencing a surge in job cuts this year, surpassing the numbers seen in 2024. By July 2025, layoffs had already exceeded 13,000, marking a 31% increase compared to the previous year. Companies such as Merck & Co., Bayer, Bristol Myers Squibb, Moderna, Tune Therapeutics, and Genentech have all announced workforce reductions. This trend is driven by various factors, including pipeline rationalization, late-stage trial failures, and the shift towards bringing more manufacturing back to the U.S.
One of the key triggers for layoffs in the industry is the failure of advanced clinical programs to meet key endpoints. Moderna, for example, recently announced an 800-person layoff as part of a broader restructuring plan due to declining COVID-19 vaccine uptake and slow sales of its RSV vaccine. Changes in the regulatory landscape, such as more stringent approval criteria for COVID-19 vaccines, have also impacted companies like Moderna.
Historical trends continue to play a role in the current wave of layoffs. Companies are focusing on core therapeutic areas and high-potential pipelines while cutting programs that do not align with their long-term strategies. This strategic realignment has led to layoffs at companies like PureTech’s startup Vedanta Biosciences, which recently announced staff reductions after a phase 2 trial for its ulcerative colitis treatment failed.
Major players in the industry, such as Merck and Bayer, are also streamlining operations to save costs and prepare for upcoming challenges. Despite positive preclinical results, companies like Generation Bio and Fate Therapeutics have been forced to make significant workforce reductions due to funding constraints.
As the year progresses, more companies in the biopharma sector may be compelled to implement restructuring plans to navigate the evolving market landscape. Without a rebound in financing, layoffs are likely to continue well into the next year. The industry faces ongoing challenges, and companies must adapt to stay competitive in a rapidly changing environment.
