Vertex Lays Off 125 Staffers, Shrinks Rhode Island Campus After Diabetes Therapy Setback

Vertex Pharmaceuticals is laying off 125 employees in Providence, Rhode Island, consolidating three facilities into one after discontinuing its experimental Type 1 diabetes cell-device therapy, VX-2641 3 5.

The workforce reduction and real estate downsizing follow the failure of VX-264 in a Phase I/II trial, where the therapy showed safety but did not produce sufficient insulin (C-peptide) levels to provide a clinical benefit3 4.

The layoffs primarily impact roles connected to the now-discontinued VX-264 program, with the changes expected to be permanent as indicated in WARN notices and company statements2 3.

Vertex absorbed a $400 million impairment charge as a result of discontinuing VX-264 and still has approximately 60 employees remaining in Providence after the cuts1 3.

Despite this setback, Vertex continues to develop another Type 1 diabetes therapy, zimislecel, which remains in late-stage clinical trials4.