Biopharma Layoffs Plummet in July Amid Massive Cost-Cutting Initiatives

July's biopharma layoffs saw a significant decrease in both numbers and impact. According to BioSpace, the number of biotechs and pharmas making or projecting workforce cuts dropped by 74% year-over-year to six companies, while affected employees fell 94% to 466. The reduction is attributed to last year's massive layoff announcements, including Merck's $3 billion cost-cutting initiative that will eventually impact about 6,000 employees.

Amgen was one of the six companies making layoffs in July, letting go of around 40 employees as part of its strategic realignment efforts. Arpeggio Biosciences decided to shut down, affecting approximately 13 employees. CLINUVEL PHARMACEUTICALS announced a global workforce reduction of 10-20%, which could impact up to 21 employees.

EMD Serono's U.S. site in Massachusetts will require research and development staffers to work on-site at least three days a week, potentially affecting up to 70 employees who can choose to resign with severance offers if they live more than 50 miles away. GSK announced a $2.5 billion restructuring plan that includes global job cuts, but did not specify the number of affected employees.

Novartis' layoffs of 322 people in East Hanover, New Jersey, were its largest round of cuts this year and brought the total number of affected employees there to 572 for the year. With July's layoff numbers already below 500, it seems unlikely that 2026 cuts will match last year's total of 28,815 affected employees.