Biopharma Layoff Trends in Q1 2025 and Outlook for Q2

Q1 Layoff Overview:
Approximately 4,015 employees were laid off across 70 companies in Q1 2025, representing an 18% decrease in employee impact compared to the same period in 2024. However, layoffs remain prevalent due to ongoing industry pressures1 3 10.

Major Layoffs:

Novartis:
Laid off 427 employees in New Jersey and 34 in California as part of broader restructuring efforts3.

Bristol Myers Squibb:
Eliminated 223 positions at its Lawrenceville, NJ site, alongside additional smaller cuts in other locations, aiming for $2 billion in cost savings by 20273 7.

Atara Biotherapeutics:
Cut 50% of its workforce linked to halted CAR T-cell therapy programs2 4.

Key Drivers Behind Layoffs:

Pipeline Failures and Patent Expirations:
Challenges in revenue retention due to expiring patents and failed clinical trials have forced companies to realign resources2 7.

Economic and Regulatory Pressures:
An uncertain regulatory environment, rising competition, and broader economic conditions have intensified layoffs2 7.

Technological Advancements:
The adoption of AI-driven drug discovery is causing shifts in workforce needs2.

Industry Trends:

Workforce reductions continue to affect cell and gene therapy companies, with high costs and commercialization challenges being significant factors7.
Biotech spinoffs and restructurings, such as that at Galapagos, are leading to large-scale layoffs as companies refocus their business models3 7.

Q2 Expectations:

Layoffs are anticipated to persist in Q2 due to ongoing restructuring efforts and cost-saving initiatives, though specifics remain unclear1 4.