The biotech industry has experienced a significant wave of layoffs in 2024, with over 5,000 employees let go so far. Major biotech companies like Spero Therapeutics, Pfizer, and Sage Therapeutics have been hit hardest, citing challenges such as failed clinical trials, funding issues, and restructuring efforts.
- Spero Therapeutics: Laid off 39% of its workforce after its oral antibiotic candidate failed in a phase 2a trial.
- Pfizer: Announced additional layoffs in Sanford, North Carolina, following a phase 3 trial failure for its Duchenne muscular dystrophy gene therapy candidate.
- Sage Therapeutics: Plans to lay off at least 165 employees, including 55% of its R&D workforce.
- Takeda: Announced layoffs in Massachusetts, with up to 79 employees facing cuts.
- Turnstone Biologics: Reduced its headcount by 60% and made significant changes to its C-suite.
- Leo Pharma: Eliminating or relocating up to 250 roles, primarily in Denmark.
- Black Diamond Therapeutics: Deprioritized one of its clinical-stage lung cancer candidates and announced further layoffs.
These layoffs underscore the strain the biotech sector is under as it navigates a combination of failed trials, economic pressures, and internal restructuring.
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