Layoffs are an unfortunate reality in the pharmaceutical and biotech industries, with companies frequently adjusting their workforce as their priorities shift. Last year saw a significant increase in job cuts, with the pharma industry alone axing 14,010 jobs, according to Challenger, Gray & Christmas. The U.S. also experienced a sharp rise in layoffs, shedding over 172,000 jobs in February, the highest monthly total since 2009.
Amidst this challenging job market, former federal employees from healthcare agencies may be looking towards the private pharma sector for employment. However, the industry itself is facing its own set of challenges, with companies of all sizes and therapeutic niches being hit by layoffs.
One trend that has emerged is the restructuring and spinoffs taking place in several large pharmaceutical companies. Bristol Myers Squibb, for example, is aiming to achieve $2 billion in cost reductions by the end of 2027, leading to ongoing job cuts. Similarly, Eisai and Biogen are restructuring their workforce as they face challenges with their Alzheimer’s treatment, Leqembi.
Galapagos, a Belgian biotech company, is also undergoing a major restructuring, splitting into two entities in an effort to reverse its fortunes. This change will result in the elimination of about 300 positions in Europe, representing 40% of the company’s workforce.
In the cell and gene therapy space, companies have been grappling with funding and manufacturing-related issues. Atara Biotherapeutics, for instance, recently announced that it is cutting half of its workforce after facing FDA rejection of one of its treatments due to manufacturing issues.
Even companies that have won approvals for their therapies, such as CRISPR Therapeutics, are facing challenges. The company is slashing positions amid a broader downturn in the CRISPR drug development space, which has seen a 50% drop in stocks over the last year.
Overall, the pharmaceutical and biotech industries are in a state of flux, with layoffs becoming more common as companies navigate market uncertainties and shifting priorities. Job seekers in these sectors will need to be prepared for a competitive job market and ongoing changes within companies.
