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Affected by the downward pressure of the global economy and the capital winter in the biopharmaceutical industry, layoffs in the biopharmaceutical sector have become increasingly common. Reasons for layoffs include mergers and acquisitions, product development failures, business reorganization, reducing management costs, and more. In November 2024, 20 companies announced layoffs. Among them...23andMeTwo rounds of layoffs occurred within one month. The following is a summary of the layoffs at each company.KronosBio Announces Approximately 83% Workforce Reduction by Year-End to Cut Costs; California-Based Biotech to Retain About 10 Employees Post-LayoffsDue to disappointing Phase I/II data in platinum-resistant high-grade serous ovarian cancer, the company also terminated the development of its CDK9 inhibitor istisociclib.Novartis announced that it will lay off nearly 140 employees from its New Jersey plant. The layoffs will begin in February 2025 and continue until August. This will mainly affect the commercial field sales teams for Xolair, Tafinlar, and Mekinist.As layoffs loom, Novartis has ramped up investments in its pipeline, including a potential $1.1 billion acquisition of gene therapy specialist Kate Therapeutics to deepen its neuromuscular expertise, and a radiopharmaceutical deal with Ratio Therapeutics that could reach up to $745 million.According to STAT News, just months after announcing a merger with AI leader Exscientia, Recursion Therapeutics has announced it will lay off dozens of employees.Recursion and Exscientia Announced Their Merger for the First Time in August 2024, with Approximately $850 Million in Cash and Cash Equivalents, Plus $100 Million in Annual Synergies, Which Can Support the Operations of the Combined Company Until 2027. In Addition to 10 Advanced Discovery Programs and More Than 10 Collaboration Projects, the Combined Company Is Evaluating More Than 10 Clinical and Preclinical Pipeline Projects. Results from Trials of Its Clinical Candidates Are Expected to Be Released Within the Next 18 Months.In order to secure resources to support its operations through 2026, Medigene has initiated an extensive organizational restructuring effort, which will result in approximately 40% of the German biotech company's workforce being laid off by 2025. According to a company press release, Medigene will retain employees critical to its new direction, focusing on R&D activities with the highest potential for return on investment. In 2025, Medigene will concentrate its resources on developing T-cell receptor (TCR)-guided therapies optimized for sensitivity, specificity, and safety. The biotech firm will also prioritize collaboration with WuXi Biologics to advance the development of its TCR-guided T-cell engager, MDG3010.Alector Announces Disappointing Phase II Study Results for Alzheimer's Antibody AL002, 41 Employees Face Layoffs, Accounting for Approximately 17% of Total Workforce. Layoffs to Occur in the First Half of 2025.The layoffs are part of a comprehensive restructuring plan, with Alector aligning its resources with new strategic priorities. In the future, this biotechnology company will focus on the progranulin projects latozinemab and AL101/GSK4527226, which are being developed for frontotemporal dementia and Alzheimer's disease, respectively.In order to reduce expenditures by approximately $1.5 billion by 2025, Bristol Myers Squibb announced plans to cut around 195 more jobs at its Lawrenceville, New Jersey facility. The layoffs will begin on February 13, 2025, and continue through the end of next year.BMS Announces Strategic Plan in Q1 Earnings Report for 2024: Core Initiative Includes Cutting Approximately 2,200 Jobs by End of YearAccording to Fierce Biotech, Sonata Therapeutics will lay off about 20 employees to streamline its organization around its most pressing and priority matters.The company has been developing a new class of therapies called network drugs, which aim to reprogram diseased cells to release therapeutic signals. In March this year, Sonata announced a collaboration with the Champalimaud Foundation to develop SNT-3012, the biotech company's novel network drug designed to treat pancreatic and colorectal cancer.Shortly after announcing the layoff of more than 200 employees, 23andMe will lay off 153 employees in California and close its branch in South San Francisco. The layoffs may be part of the previously announced job cuts. The genetic testing company will lay off 122 employees in Sunnyvale and 31 employees in South San Francisco starting January 10.Due to increasing competition from China, Johnson & Johnson and Merck are laying off employees in the country. J&J's layoffs primarily affect a department selling surgical products, while Merck is cutting back on its diabetes division. Chinese media reports suggest that J&J’s layoffs could impact up to one-fifth of the pharmaceutical company’s mainland workforce. The number of affected employees at Merck has not been reported.In addition, J&J has laid off 231 employees at its headquarters in New Brunswick, New Jersey. These cuts will take effect on December 27.According to the WARN notice, Gilead Sciences and its subsidiary Kite Pharma are laying off 72 employees. The Gilead Seattle facility will close starting January 17. A total of 104 employees at the company’s headquarters in Foster City, California, will be laid off starting March 14, 2025. Kite Pharma will shut down its Philadelphia facility by mid-2025. The layoffs are due to corporate adjustments to further align resources with long-term strategic goals.Adaptimmune Announces Approximately 33% Workforce Reduction in Q1 2025 to Decrease Total Operating Expenses by About 25%. Additionally, Adaptimmune Will Halt Enrollment for the Phase II SURPASS-3 Trial of Uza-cel, Its Next-Generation Investigational TCRT Cell Therapy Being Tested for Platinum-Resistant Ovarian Cancer. From 2025 to 2028, Adaptimmune Anticipates Saving Approximately $300 Million, Which Will Enable the Biotech Firm to Focus on Its Synovial Sarcoma Portfolio, Including the Launch of Tecelra and the Development of Lete-cel.On November 14, clinical-stage biotechnology company Sensei Biotherapeutics announced that in order to focus resources on advancing the clinical development of the immune checkpoint inhibitor SNS-101, the company would cut its workforce by 46%. The majority of the layoffs will come from its preclinical R&D team. The Rockville, Maryland-based company will also close its research facility in Rockville. These measures are expected to extend Sensei’s cash runway into the second quarter of 2026.Sensei's SNS-101 inhibitor is a conditionally active antibody designed to selectively target the immune checkpoint VISTA (V-domain Ig Suppressor of T cell Activation) in the tumor microenvironment. The company is conducting a multicenter Phase I/II clinical trial of SNS-101 as a monotherapy and in combination with Regeneron's PD-1 inhibitor Libtayo for the treatment of patients with advanced solid tumors.Marinus Pharmaceuticals announced that due to the Phase III results of ganaxolone for the treatment of seizures associated with tuberous sclerosis complex not meeting expectations, the company laid off approximately 45% of its employees.This is the second known round of layoffs this year. In May, Marinus disclosed that it would cut approximately 20% of its workforce. Following the layoffs in May and November, the company may have around 73 employees remaining.According to STAT News, Orna Therapeutics has carried out two rounds of layoffs within a year, without disclosing the number of employees affected. Meanwhile, the company has readjusted its product pipeline.Orna’s panCAR platform, designed to treat autoimmune and tumor diseases, combines its oRNA technology with proprietary lipid nanoparticles to create therapies that modify immune cells. According to its website, the company aims to introduce its panCAR candidate into clinical trials by 2026.23andMe Announces Layoffs of Over 200 Employees, Approximately 40% of Its Workforce, Due to Ceasing Development of New Therapies and Focusing on Genetic Testing Services and Products to Streamline Operations and Reduce Costs.Layoffs will cost the company up to $12 million, including severance pay, transition periods, and costs related to the termination of employment. In return, 23andMe is expected to save more than $35 million annually.Thermo Fisher Scientific, headquartered in Wilmington, will lay off 160 employees across three locations in Lexington, Plainville, and Cambridge, Massachusetts, between January 6, 2025, and November 6, 2026. Thermo Fisher will close the Lexington facility and transfer projects from Lexington to Plainville.Aurinia Pharmaceuticals Announces Strategic Restructuring with Approximately 45% Workforce Reduction to Advance Lupkynis for Lupus Nephritis and Accelerate Development of Autoimmune Candidate AUR200Aurinia said in the announcement on November 7 that the restructuring would enhance operational efficiency and save the company more than $40 million in annualized cash operating expenses.To focus more on the primary candidate product for lymphoma patients, nana-val, Viracta Therapeutics, a biotechnology company based in Cardiff, California, announced a 42% reduction in workforce. The layoffs took effect on October 31. Four out of ten directors voluntarily resigned. After the layoffs, the biotech company has approximately 18 employees.According to WARN notices, as Astellas Gene Therapies continues to gradually shut down its biomanufacturing facility in San Francisco, Astellas will lay off 10 employees on January 1. The closure of the facility is expected to be completed by March 2025, affecting approximately 100 employees. It remains unclear how many of these employees will be laid off, but the layoffs can be traced back several months. Seven employees were laid off on October 21, and 10 employees were laid off on June 19.Sana Biotechnology Announces Layoffs Amid Pipeline Shifts and Cashflow Extension Plans; Number Unclear. In 2023, Sana Cut Approximately 120 Employees (29%) to Focus Resources on Its Low Immunogenicity Platform.https://www.biospace.com/biospace-layoff-tracker
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