AI Drug Discovery Firm Insitro Lays Off 22% of Workforce Amid Ongoing Biotech Market Turmoil

Insitro, an AI-driven biotech company specializing in drug discovery, has laid off 22% of its workforce, reducing its staff to around 230 employees1.
The company attributed the layoffs to the "tumultuous market," aiming to sharpen its focus on key priorities, ensure readiness for clinical programs in the coming year, and maintain operational sustainability into 2027.
Insitro’s restructuring is part of a broader trend in the biotech industry, with multiple companies announcing significant workforce reductions in early 2025 due to challenging market conditions and cost-control measures12.
Biotech layoffs in 2025 have impacted thousands of professionals, though the overall number of affected employees is down 18% compared to the previous year5.
Restructuring moves like Insitro’s reflect a strategic shift to prioritize pipeline assets and extend financial runway amid uncertain funding environments5.

Sources:

1. https://www.fiercebiotech.com/biotech/fierce-biotech-layoff-tracker-2025

2. https://xtalks.com/pharma-and-biotech-layoffs-2025-4110/

5. https://www.biospace.com/job-trends/the-5-largest-biopharma-layoffs-of-q1-2025