The biopharmaceutical industry is experiencing a wave of layoffs in 2025, as companies navigate strategic realignments, pipeline reprioritizations, and challenging financial landscapes. Several companies have announced significant workforce reductions, reflecting a broader trend in the industry to optimize resources and focus on core assets. These decisions often accompany the discontinuation of certain drug development programs and a shift in strategic focus towards key areas.
Intellia Therapeutics Cuts Workforce to Focus on Gene Editing Programs
Intellia Therapeutics announced a workforce reduction of approximately 27% as part of a reorganization program. The company will concentrate its efforts and resources on high-value programs, specifically its investigational gene editors NTLA-2002 for hereditary angioedema and nexiguran ziclumeran (nex-z) for transthyretin amyloidosis. As part of this strategic pivot, Intellia will discontinue the development of its investigational therapy NTLA-3001, which was being tested for alpha-1 antitrypsin deficiency-associated lung disease. The company expects the layoffs to occur throughout 2025, with the goal of becoming a "commercial-ready organization by the end of 2026."
IGM Biosciences Halts Autoimmune Programs, Cuts 73% of Workforce
IGM Biosciences is cutting 73% of its workforce and halting development of two autoimmune drug candidates, imvotamab and IGM-2644, bispecific antibody T cell engagers for autoimmune diseases. The company is also evaluating strategic alternatives to maximize shareholder value. Following the announcement, BMO Capital Markets downgraded the company's shares from outperform to market perform. The layoffs could affect approximately 144 people, leaving the company with fewer than 55 staffers.
Generation Bio Reorganizes to Support Clinical Development
Generation Bio is reorganizing to support the clinical development of its T cell–directed medicines. This move includes C-suite changes and a 20% staff reduction in Cambridge, Massachusetts, expected to be completed by the second quarter of 2025. The company is moving towards the clinic by deploying its cell-targeted lipid nanoparticle (ctLNP) to develop siRNA therapeutics, aiming to silence disease-driving targets in T cells. Generation Bio plans to submit its first Investigational New Drug (IND) application in the second half of 2026.
CytomX Therapeutics Focuses on Clinical Programs, Cuts 40% of Staff
CytomX Therapeutics will cut about 40% of its employees to direct capital resources to its clinical programs and create flexibility in its cost structure. The company's top strategic objective for 2025 is the development of CX-2051, an antibody-drug conjugate being developed initially in advanced metastatic colorectal cancer. Plans for Phase Ia completion and potential advancement to Phase Ib of CX-904, a T-cell-engaging bispecific antibody it’s working on with Amgen, are pending ongoing consideration of 2025 program resourcing given CytomX current capital constraints and discussions with Amgen.
Cassava Sciences Reduces Workforce After Alzheimer's Drug Failure
Cassava Sciences announced it will lay off 10 employees, representing approximately 33% of its headcount, in an attempt to cut costs. This decision follows the Phase III failure of its Alzheimer's disease drug candidate simufilam in November 2024. The company will also halt previously planned biomarker analyses of plasma samples from prior trials.
Galapagos Splits into Two Entities, Cuts 40% of Workforce
By mid-2025, Galapagos will split into two entities and cut 40% of its workforce, affecting about 300 employees across its Europe operations. The new entities will be an innovative medicines specialist and a cell therapy company that will inherit the Galapagos name. The company will also take back the rights to its pipeline from Gilead and discontinue its small molecules program.
Other Companies Implementing Layoffs
Several other biopharmaceutical companies have announced layoffs in recent weeks, including:
- Y-mAbs Therapeutics: Expects to cut about 13% of its workforce as part of a realignment.
- Scribe Therapeutics: Downsizing by around 20% as it gears up for clinical studies.
- Resilience: Laying off 120 employees at its Research Triangle Park gene therapy facility and 105 employees from its Alachua, Florida, site.
- Velia: Shutting down and eliminating its workforce of 47 employees.
The ongoing layoffs in the biopharmaceutical industry reflect the challenges companies face in a rapidly evolving market. As companies strive to innovate and bring new therapies to patients, they must also make difficult decisions to optimize resources and ensure long-term sustainability.
