Pharma layoffs in 2025 have escalated dramatically. The biopharma sector alone recorded at least 128 layoff rounds in the first half of the year. It’s an astounding 32% jump from the same period in 2024, signaling deeper economic pressures and strategic pivots across the industry.

Among this commotion, the month of May stood out. It marked the highest monthly tally in four years, with 29 reductions in force hitting companies large and small.

Yet, as we approach the end of the third quarter, the wave shows no signs of abating, with pharma job cuts in 2025 already affecting thousands, from global giants to nimble startups, all grappling with patent cliffs, funding droughts, and a relentless drive for efficiency that leaves workers in limbo while shareholders demand leaner operations.

The scale of pharma layoffs in 2025

The numbers, however, tell a grim story. Bristol Myers Squibb (BMS) leads the pack among big pharma players. In a series of cuts, the company eliminated over 1,000 roles in the first half alone; including 516 in Lawrenceville, New Jersey in May; 223 there in March; and smaller rounds of 67 in New Jersey and 57 in Redwood City, California back in February.

These pharma layoffs this year stem from a massive $3.5 billion cost-saving push through 2027, fueled by looming patent expirations on blockbusters like Eliquis and Opdivo, forcing BMS to streamline and refocus its portfolio in ways that ripple through entire teams and communities.

Novartis follows closely. It shed 427 employees at its U.S. headquarters in East Hanover, New Jersey in March, with cuts stretching from June to October, and added another 58 in September amid reviews aimed at boosting efficiencies in medical affairs.

This pattern of pharma layoffs in 2025 reflects a broader efficiency drive, where even profitable firms like Novartis are trimming to hit ambitious targets like exceeding 40% by 2027.

Teva Pharmaceuticals announced the largest single round: 2,893 jobs worldwide by 2027, starting in May, as part of a growth strategy to save $700 million annually through optimized operations and stronger generics focus.

Bayer, too, cut 2,000 roles in the first quarter alone, emphasizing reductions in management to become “leaner and faster” after shedding 11,000 since mid-2023.

Pfizer joined in August with 100 layoffs at its Bothell, Washington site, continuing aggressive cost realignments post its $43 billion Seagen buyout, all while eyeing $500 million in savings this year.

Merck closed a Pennsylvania facility in March, affecting 163 workers in phases through 2026.

And CSL, an Australian biotech powerhouse, slashed 15% of its 29,000-strong workforce in August, though specifics remain sparse.

A brutal year of closures and deep cuts

Biotech feels the pain most acutely. Layoffs in 2025 here often mean survival mode. Companies like Sage Therapeutics axed 338 in Cambridge, Massachusetts in June, tied to its pending $795 million acquisition by Supernus Pharmaceuticals after rejecting a Biogen bid and facing trial flops.

Recursion Pharmaceuticals let go 20% of staff in June to stretch its cash into late 2027, prioritizing pipeline amid $509 million reserves.

Vertex cut 125 in Rhode Island that same month, consolidating sites after dropping a diabetes program.

Exelixis reduced by 130 in August, closing a Pennsylvania facility and shifting to its Alameda HQ.

Smaller firms fared worse. Many shuttered entirely: Appia Bio in August due to funding woes; Lyndra Therapeutics in March after exhausting cash for trials; iTeos in May post disappointing data and lost partnerships.

Others slashed deep: Tempest Therapeutics by 80% (21 people) in April; Pliant by 45% (75) after safety halts; Arvinas by 131 in Connecticut amid project drops.

Unity Biotechnology laid off its entire remaining 16 staff in May, exploring sales or shutdown.

These pharma job cuts in 2025 highlight a funding crunch, with eight biotech closures in Q1 dropping to four in Q2, yet the human toll mounts as firms like Vor Bio (95% cut) pivot desperately to deals.

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