November Sees 19 Pharma Companies Announce Layoffs, with China Operations Slashing 2,000 Jobs Amid Intensified Cost-Cutting

Dec 01, 2024 19:28 CST Updated 19:28

Johnson & Johnson

Medical Device R&D and Manufacturer

Sana

Health Benefits Provider

Aurinia

Biopharmaceutical Manufacturer

The wave of layoffs in the pharmaceuticals industry continues.

According to monitoring, globally there were at least19 companiesPharmaceutical companies have announced staff and pipeline streamlining situations or plans.

The businesses of multinational pharmaceutical companies in China have been most affected this time, with Johnson & Johnson and Merck successively initiating layoffs in China.

Johnson & Johnson China Reported to Have Initiated Large-Scale Layoffs,The number of people reached up to 2,000, accounting for approximately 20%., among which the surgical department was most affected, and compensation was provided according to years of service.

The main reason for Johnson & Johnson's layoffs is the decline in performance.Affected by the centralized procurement, the company's previously most important ultrasonic knife business in China, which accounted for 95% of the market share, has now dropped to less than 30%., and is still continuing to decline.

Starting from the second quarter of this year, Johnson & Johnson also began business adjustments, with several senior executives leaving, including Song Weiqun, President of the China region.

Coincidentally,Merck & Co. has also been confirmed to streamline employees in the China region, with the main impact on the diabetes department., but the number of layoffs is unknown.

Merck has three diabetes drugs, namely Sitagliptin, Sitagliptin Metformin, and Ertugliflozin.But in recent years, it has been affected byThe Significant Impact on Merck's Diabetes Business from Centralized ProcurementSevere shrinkage, needSignificantly control costs.

In fact, in recent years, the continuous promotion of bulk procurement has led to a decline in drug prices. Behind the "soul-cutting price negotiation" is a significant drop in pharmaceutical companies' profits, leaving multinational pharmaceutical companies no choice but to downsize or sell their businesses in China.

For example, Pfizer sold its PCV13 vaccine and laid off the entire department. It can be foreseen that multinational pharmaceutical companies will likely impose stricter cost controls to adapt to changes in China's pharmaceutical environment.

The following is the list of global pharmaceutical companies' layoffs in November:

November 5

It is reported that Sana Biotechnology's R&D focus has shifted from cancer to autoimmune diseases, leading to a strategic reorganization of the company. However, the number of layoffs has not been disclosed. The company stated: "All functions will be affected."

November 6

Viracta Therapeutics, Focused on Precision Oncology, Announces Strategic Restructuring to Concentrate on Nana-val Development Program for Relapsed or Refractory EBV-Positive Peripheral T-Cell Lymphoma (PTCL); Company Reduces Workforce by Approximately 42% as Part of the Restructuring.

November 7

Due to the company's failure to find a buyer, Aurinia announced a 45% layoff to maintain cash flow. The focus shifts to the lupus treatment drug Lupkynis.

（

voclosporin

）

Market promotion and its only pipeline asset.

November 11

Gene Sequencing Company Announces Major Restructuring Plan, Including 40% Layoffs and Termination of All Treatment Projects. The main reasons are the decline in the company's genetic testing business and a cash flow crisis, with cash and cash equivalents plummeting from $216 million to $127 million.

November 13

Due to the failure of a core drug in a Phase III clinical trial, Marinus Pharmaceuticals, headquartered in Pennsylvania, announced a 45% reduction in staff.

November 13

Cell therapy company Adaptimmune announced a 33% layoff in the first quarter of 2025, aiming to save $300 million over the next four years and achieve break-even by 2027.

In August this year, Adaptimmune developedTecelra Becomes the First TCR-T Therapy Approved in the U.S. for Solid Tumor Cancers.

November 14

According to the WARN (Worker Adjustment and Retraining Notification Act) document, Gilead will lay off 104 employees at its Foster City headquarters, effective March 14, 2025.

November 14

Cancer Biotech Sensei Biotherapeutics Announces 46% Layoffs and Closure of a Research Base to Preserve Cash for its Immune Checkpoint Inhibitor Through Phase 2.

November 20

Johnson & Johnson China Exposed to Large-Scale Layoffs, Affecting Over 2000 Employees. The Main Department Impacted is the Surgical Division, Involving Structural Adjustments with a Wider Impact. Compensation is Based on Years of Service, with Employees Serving Over 6 Years Receiving N+3 Compensation.

November 20

Pharmaceutical giant Merck also announced layoffs in the Chinese market, primarily affecting the diabetes business unit. The main reason may be the pressure on the company's operations due to centralized procurement.

November 21

Sonata, backed by the renowned venture capital firm Flagship, has also announced cost-cutting measures and efficiency improvements, resulting in the layoff of approximately 20 employees. Chief Executive Officer Volker Herrmann, M.D., has resigned, and Chairman David Khougazian has taken over as interim CEO.

November 22

Lexicon Pharmaceuticals is cutting its commercial sales team by about 60%, a move that will reduce full-year operating costs by $100 million in 2025. As early as August this year, Lexicon had already carried out a round of layoffs, which affected 50% of its field staff.

November 25

Since the beginning of this year, Bristol-Myers Squibb has been continuously laying off employees in Lawrenceville, New Jersey. In November, it announced 195 layoffs. So far this year, BMS has laid off a total of 1,329 people in this location.

November 26

Alector, which is collaborating with AbbVie on an Alzheimer's drug, announced the suspension of a clinical trial and layoffs of 17% of its workforce after the drug failed to slow disease progression in Phase 2 clinical trials.

November 26

Medigene is cutting 40% of its workforce and pausing plans to move its first asset into clinical trials in order to direct cash toward its T-cell receptor-guided therapies.

November 26

Novartis Plans to Cut 139 Jobs in East Hanover, New Jersey. The layoffs will primarily affect commercial field sales personnel responsible for the brand Xolair, which treats asthma and allergies, as well as the oncology portfolio consisting of the kinase inhibitors Tafinlar and Mekinist (Taf+Mek).

November 27

Kronos Bio Implements Large-Scale Layoffs, Cutting 83% of Workforce Amid Company Restructuring; Multiple Executives Affected

The main trigger was the drug candidate istiosiciclib, due to adverse reactions observed in ovarian cancer patients. The company halted the development of the drug. Kronos Bio is now exploring strategic alternatives and focusing on preclinical inhibitors KB-9558 and KB-7898.

November 27

This month, AI pharmaceutical company Recursion announced layoffs after acquiring Exscientia. Both companies were affected. Later, a company spokesperson stated that less than 20% of the employees were impacted. According to the press release, the total number of employees in the newly merged company is 800.

—The End—

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