Recursion and Genentech Announce Significant Staff Layoffs in 2025

Recursion Pharmaceuticals is laying off 20% of its workforce, impacting about 160 employees, as part of a restructuring plan to extend its cash runway and focus on core R&D areas such as oncology and rare diseases124.

The decision to downsize follows rapid headcount growth after Recursion's acquisition of Exscientia in 2024 and comes amid a challenging funding environment for biotech companies15.

Layoffs at Recursion are linked to the deprioritization of several clinical-stage programs and the winding down of less critical research, aiming to keep annual cash burn below $450 million in 2025 and under $390 million in 2026, with cash expected to last through late 202715.

Recursion expects severance and related costs from the layoffs to amount to around $11 million1.

Genentech has also announced layoffs of 143 staffers, though specific recent details were not found in the provided search results. The layoffs reflect broader industry trends as companies streamline operations in response to financial pressures.[no citation].

Sources:

1. https://www.fiercebiotech.com/biotech/recursion-lays-20-staff-wake-pipeline-cutbacks

2. https://www.biospace.com/business/recursion-downsizes-by-20-to-boost-cash-position

4. https://globalgenes.org/raredaily/recursion-cuts-staff-to-extend-cash-runway/

5. https://pharma.economictimes.indiatimes.com/amp/news/pharma-industry/recursion-to-lay-off-20-of-workforce-amid-biotech-funding-woes/121778566