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Everything to Know About Pharma Layoffs in 2025
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Key Takeaways
- Major pharmaceutical companies are implementing layoffs and restructuring due to patent cliffs, regulatory uncertainties, and market competition.
- Pfizer, CSL, and Merck are among the companies announcing significant job cuts as part of strategic transformations.
As more companies announce layoffs and other restructuring plans, industry experts are asking what will happen next.
Are more layoffs coming for pharma workers?
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Are pharma companies laying off?
Multiple pharmaceutical companies have announced significant layoffs in 2025. This includes major companies Pfizer, CSL, and Bayer. Companies have also announced restructuring plans to reduce costs and streamline operations. The layoffs are being blamed on a variety of factors, including an upcoming patent cliff and various regulatory uncertainties in the current market.
Who usually goes first in layoffs?
Pharma companies may use different strategies when implementing layoffs. In general, low-performing employees and recent hires are the first to be let go. In the pharma industry, companies often coincide layoffs with strategic restructuring, so teams working on certain drugs may be let go if that medication is no longer considered a priority.
Is Pfizer laying off?
In late August, reports surfaced that Pfizer plans to lay off at least 100 employees at its recently acquired Seagen HQ. This move is part of the company’s stated plans to improve R&D productivity and increase automation and digital enablement.
Why did Novo Nordisk implement a hiring freeze?
Novo Nordisk is facing increased competition in the GLP-1/weight loss medication space. While the company was able to expand due to the success of semaglutide, it’s now facing a more difficult market. As such, the company announced a hiring freeze for non-essential roles.
How many employees did CSL layoff?
CSL announced plans in late-August to layoff about 15% of its workforce. The company will also close 22 of its plasma centers in the United States. According to CSL, this is part of a strategic transformation.
Why is Merck cutting 6,000 jobs?
In early-August, Merck announced plans to restructure its operations. While this does include plans to cut 6,000 jobs, the company stated at the time that the plan is to reinvest the money saved from the lost jobs into other areas of the company it expects to perform strongly in the coming years. Some areas will see a reduction in headcount while others are expected to see an increase as part of a plan to streamline operations by 2027.
Is AI replacing laid off workers at FDA?
While FDA announced it plans to utilize AI during the drug approval process, the agency’s AI-platform is reportedly suffering from hallucinations. According to reports, this is actually making it more difficult to complete the drug approval process. As of mid-2025, the agency is not requiring any personnel to use AI and still considers the technology as an optional tool.
What federal agencies have faced layoffs?
In early 2025, the Trump administration announced significant layoffs across all agencies at Health and Human Services. However, those initial plans were delayed and altered throughout the year. However, the administration is still planning to finalize the removal of 10,000 employees at FDA, NIH, and the CDC. Probationary workers were some of the first to be let go at these agencies.
How long will layoffs continue in the pharma industry?
Industry experts generally expert layoffs to continue through 2025. It’s unclear what will happen in the coming years, however. Many of the issues causing layoffs were expected and pharma companies are hoping that these initial restructuring efforts will mitigate these expected issues. Regulatory uncertainties, such as tariffs and MFN pricing issues, could cause further issues down the road.
What’s causing layoffs in the pharma industry?
There are multiple issues causing layoffs in the pharma industry. The industry saw a period of growth immediately following the COVID-19 pandemic, and it is now experiencing a period of cooling off. Other issues, such as the patent cliff and IRA pricing negotiations are also cited as reasons for financial concern at pharma companies. Lastly, potential tariffs and MFN pricing are also expected to have a financial impact on the industry.
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