Biotech and Pharma Job Cuts: Opthea and Pfizer Restructure Amid Industry Challenges

Opthea's Layoffs and Strategic Shift

Scope of Layoffs:
Opthea will reduce its workforce by approximately 65%, leaving 17 employees from its initial 49-person staff1 5 8.

Reason for Layoffs:
The decision follows two failed Phase III clinical trials for sozinibercept, a therapy for wet age-related macular degeneration (AMD)1 5.

Financial Position:
Opthea reported $100 million in cash and cash equivalents as of March 2025 but foreshadowed a material uncertainty regarding its sustainability as a business1 5.

Cost Implications:
Layoffs will result in one-time costs of $4.5 million, while monthly employee-related expenses will decrease by $1 million5 8.

Timeline:
Layoffs take effect on May 1, 20255 8.

Pfizer's Restructuring in San Diego

Layoffs Announced:
Pfizer will cut 56 employees in San Diego, effective June 2, 20258 9.

Reason for Cuts:
Part of its broader cost realignment and efficiency programs targeting $6 billion in net savings by 20278 9.

Associated Changes:
Pfizer sold a $255 million research site in San Diego. However, the company clarified that the layoffs and site sale are unconnected events9.

Broader Context:
Pfizer is adjusting its operations post-COVID, as demand for its pandemic-related products (Paxlovid and Comirnaty) significantly declined4 9.

Industry-wide Trends

Drivers of Layoffs:
Clinical trial failures, patent cliffs, financial pressures, and resource reallocation toward next-generation technologies like AI in drug discovery are driving workforce reductions across biotech and pharma2 3.

Market Challenges:
Declining demand for previously high-performing drugs and regulatory uncertainties are further pressuring companies to adapt3.