The 5 Largest Biopharma Layoffs of Q1 2025: An Overview of Industry Restructuring

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Top 5 Largest Layoffs in Q1 2025:

Novartis:
Laid off 427 employees at its East Hanover, New Jersey headquarters.

Galapagos:
Reduced its workforce by 300 across European operations.

Bristol Myers Squibb (BMS):
Cut 223 jobs at its Lawrenceville, New Jersey, facility.

Merck:
Terminated 163 employees at its Riverside, Pennsylvania manufacturing site.

Gilead Sciences:
Announced 149 layoffs in Foster City, California, ahead of new product launches.

Industry-Wide Trends:

A total of 63 layoff rounds occurred in Q1 2025, with approximately 1,965 job cuts reported by 20 biopharma companies1.
March saw the highest number of layoffs with 26 reported rounds, highlighting ongoing economic and strategic challenges1.
Layoffs have impacted companies of all sizes, driven by financial pressures, increased competition, and shifting strategic priorities2 7.

Notable Closures:

Eight biotech companies, including Velia Therapeutics and Carisma Therapeutics, shut down operations due to financial difficulties and clinical setbacks1.

Sector-Specific Challenges:

Cell and gene therapy companies accounted for 31% of layoffs, reflecting struggles in commercialization and high development costs1.
Companies like CRISPR Therapeutics and Cargo Therapeutics faced significant workforce reductions despite prior advances1 8.

Economic Factors Influencing Layoffs:

Declining venture capital funding and rising economic uncertainties, such as interest rates and tariffs, have exacerbated financial pressures within the sector4.
Larger companies, including Merck and Novartis, are restructuring to optimize portfolios and streamline manufacturing operations7.

Long-Term Implications:

The current wave of layoffs reflects broader industry adaptation to market conditions, with companies reallocating resources to high-priority therapeutic areas and late-stage pipelines5 7.