What Sarepta’s Layoffs, and Others Across Biopharma, Mean for Industry Professionals

Scissors cutting a paper craft of a row of human shaped outline on blue background. Illustration of the concept of layoff and downsizing of staff | Image Credit: © Dragon Claws - stock.adobe.com

On July 15, 2025, Sarepta Therapeutics announced a major round of layoffs tied to restructuring its gene therapy and RNA platforms (1). While painful for those directly affected, the move is part of a broader trend: biopharma is entering a phase of strategic contraction. Companies across the United States and globally are cutting staff, shelving programs, and tightening capital discipline — professionals across the sector should take notice.

Sarepta’s layoffs: more than a one-off event

Sarepta’s news release describes the restructuring as aimed at focusing on core commercial and clinical-stage gene therapy and RNA assets, including a workforce reduction (1). These cuts underscore that even late-stage innovation programs are subject to volatility.

Implications include:

• Job stability is increasingly tied to the clinical pipeline’s performance
• Commercial metrics and regulatory milestones are essential for sustaining investment and headcount

Biopharma's layoff wave: 2025 snapshot

Layoffs surged in the first half of 2025, with some reports indicating at least 128 layoff events, marking a 32% year-over-year increase (2).

Notable 2025 layoffs include:

• Gilead Sciences cut 149 roles at its Foster City headquarters, largely among senior and corporate staff (3).
• Roche (Genentech) eliminated 108 roles at its Santa Clara, CA Molecular Systems & Sequencing unit (3).
• Allogene Therapeutics reduced workforce 28% to extend runway into 2027 amid CAR-T delays (4).
• Molecular Partners cut its workforce 24% to focus on key clinical candidates through 2028 (5).
• IGM Biosciences reduced its workforce 73% after halting autoimmune programs.
• Jasper Therapeutics cut about 50% of its workforce following dosing error in its briquilimab trial (6).
• Prime Medicine laid off 25% of its staff, shelved a sole clinical asset, and its CEO resigned (7).
• Novartis will cut 427 at its East Hanover, NJ site between June and October 2025 (2).
• Merck & Co. eliminated 163 jobs at its Pennsylvania plant as part of a multi-year wind-down (2).

Common drivers include:

• Clinical trial failures, redesigns, or dosing mishaps
• Strategic pipeline narrowing
• Slower-than-expected commercial adoption
• Efforts to extend cash runway without new funding

Key takeaways for biopharma professionals

1. Pipeline dependence is career-relevant

Roles in R&D, regulatory, clinical operations, quality, and chemistry, manufacturing, and controls (CMC) are now closely tied to trial outcomes. Negative clinical data can swiftly impact staffing across the company.

2. Big pharma isn’t immune

Layoffs aren’t limited to early-stage biotechs. Major players like Roche, Gilead, Novartis, and Merck are also trimming teams to refocus or automate (2,3).

3. Non-lab functions are at risk too

Recent cuts have impacted commercial, quality, and manufacturing teams, not just research groups. Operational functions are under greater scrutiny (2,3).

4. Expect lean operations going forward

Teams are shrinking and productivity per person is becoming a critical KPI. Cross-functional agility, project ownership, and cost-effectiveness are increasingly vital.

What comes next

Professionals need to remain flexible, develop cross-functional capabilities, and ensure their work contributes directly to core pipeline priorities. Roles in clinical development, regulatory affairs, CMC, analytics, business development, and beyond should clearly connect to organizational strategy and financial discipline.


References

Sarepta Therapeutics. Sarepta Therapeutics Announces Strategic Restructuring and Portfolio Prioritization. Press Release. July 15, 2025.

Masson, G. Biopharma Layoffs for First Half of the Year Jump 32% YOY. FierceBiotech.com. July 8, 2025.

Li, R. Two Biotech GiantsEach Lay Off More than 100 Bay Area Workers. SFChronicle.com. July 3, 2025.

Taylor, Nick Paul. Allogene lays off 28% of staff to extend runway amid delays to CAR‑T Updates. FierceBiotech.com. May 14, 2025.

Reuters. Molecular Partners to Cut Workforce by a Quarter. Reauters.com. June 10, 2025.

Council, Stephen. Bay Area Biotech Company’s Drug Mishap Leads to Dozens of Layoffs. SFGate.com. July 10, 2025.

United States Securities and Exchange Commission. Form 8-K: Prime Medicine, Inc (access July 17, 2025).