Medical Science Laboratory with Diverse Multi-Ethnic Team of Biotechnology Scientists Developing Drugs, Microbiologist Working on Computer with Display Showing Gene Editing Interface.

[Gorodenkoff/Adobe Stock]

On the heels of a strong year of FDA approvals, there are signs in early 2024 that the biotech sector is recovering. Examples include two recent biotech IPOs, signs of investor optimism and continued M&A momentum. But the biotech sector continues to see a significant number of layoffs. Major layoffs in early 2024 include companies like Cara Therapeutics, Ikena Oncology, Pfizer, and Sana Biotechnology. In early 2024, the rate of layoff events has continued at roughly the same clip over the past several months. Altogether, there were more than 1,300 job cuts in January.

Public companies driving the most layoffs

In terms of the source of the layoffs, public companies such as Pfizer, Intellia Therapeutics, and Thermo Fisher Scientific are letting the most workers go, with more than 600 layoffs in January 2024. Next in line are clinical-stage companies such as the oncology-focused biotechs Affimed and Allogene Therapeutics, as well as the biopharmaceutical company Allakos, which focuses on developing treatments for allergic, inflammatory, and proliferative diseases. These companies have jointly laid off more than 250 workers in January. Rounding out the top three was the cell therapy firm AlloVir, which laid off roughly 101 workers (95% of its total) following disappointing data from three phase 3 studies and the discontinuation of the development of posoleucel, a multi-virus-specific T cell therapy.

 

The two Coasts hard hit

Massachusetts and California were the epicenters of biotech layoffs in the U.S. this January. In the Greater Boston area, companies like Aera Therapeutics, AlloVir, C4 Therapeutics, and Intellia Therapeutics faced significant biotech workforce reductions, cumulatively accounting for more than 250 layoffs. In Hayward, California, Lonza let 218 workers go after announcing the closure of a clinical manufacturing site. South San Francisco was next in line, with the clinical-stage gene-engineering firm Allogene Therapeutics, Big Pharma Pfizer and synthetic biology firm Senti Biosciences all announcing layoffs there. Between them, there were a total of 175 layoffs.

Meanwhile, internationally, a significant number of layoffs thanks to the ongoing struggles of Affimed, which cut half of its workforce after cutting another quarter in spring 2023. The company had 228 workers at the end of March 2023. In January 2024, Affimed also announced the sale of its subsidiary AbCheck to Ampersand Biomedicines for $6 million. The company’s CEO, Dr. Adi Hoess, also stepped down as CEO on January 15, 2024. He had been with the company since October 2010 and served as CEO since September 2011.

Bayer has also announced a restructuring initiative, but has not projected how many employees would be affected.

Summary of the most recent layoffs

Many of the layoff totals were estimated based on available percentages of the workforce reductions paired with the most recent available total employee number:

Company Name Industry Sector Date Location Layoff Details Total employee number Estimated layoffs Comments
Aera Therapeutics Biotechnology Jan. 4 Cambridge, Mass. 25% of its staff 71 18
Company cited difficult funding environment. Plans to focus on novel delivery platforms.
Affimed Immuno-oncology Jan. 8 Mannheim, Germany up to half of its headcount 228 86
Focus on clinical-stage programs. CEO stepping down.
Allakos, Inc. Biotechnology Jan. 16 San Carlos, California about 50% of its workforce 123 62
After disappointing Phase 2 results, company will focus on monoclonal antibody AK006.
Allogene Therapeutics Biotechnology Jan. 5 South San Francisco nearly a quarter of its workforce 310 78
Shift focus to developing blood cancer therapy.
AlloVir Cell Therapy Jan. 5 Waltham, Mass. 95% of workforce 106 101
Following a triple phase 3 failure. Cuts mostly in Q1 and finish by Apr. 15.
Bayer Pharmaceutical and biotechnology Jan. 17 Leverkusen, Germany Unspecified number 101,369 —
New operating model implementation.
C4 Therapeutics Biopharmaceutical Jan. 9 Watertown, Mass. 30% of its staff 146 44
Focus on development of clinical-stage candidates CFT7455, CFT1946, and CFT8919.
Cara Therapeutics Biopharmaceutical Jan. 22 Stamford, CT about half of its employees 106 53
Shuttering of Phase 3 chronic kidney disease program. Focus on notalgia paresthetica (NP).
Dewpoint Therapeutics Biotechnology Jan. 16 Boston 20 positions (15% of staff) 147 20
Focus on growing AI platforms and clinical trials.
Hookipa Pharma Biopharmaceutical Jan. 29 New York and Vienna 30% of its workforce 156 47
Termination of agreement with Roche and cost-saving initiative.
Ikena Oncology Targeted Oncology Jan. 18 Boston 35% of its workforce 74 26
Organizational streamlining. Focus on clinical-stage oncology candidates.
Intellia Therapeutics Biotechnology Jan. 4 Cambridge, Mass. 15% of its workforce 598 90
Pausing select exploratory research-stage programs. Focus on lead programs.
Lonza Group
Pharmaceutical, biotech, and nutrition
 Hayward, California 218 employees 17,500 218
Announced layoffs at its clinical manufacturing site in Hayward, California, which will permanently close.
Pfizer Pharmaceutical and biotechnology Jan. 29 South San Francisco 52 employees 83,000 52
More layoffs after announcing 285 job cuts at a New York R&D site earlier this month.
Pfizer Pharmaceutical and biotechnology Jan. 4 Pearl River, NY 285 employees 83,000 285
At vaccine R&D site. Part of 9 major R&D sites of the company.
PMV Pharmaceuticals Precision Oncology Jan. 18 Princeton, New Jersey 30% of its staff 62 19
Focus on development of PC14586 for solid tumors.
Senti Biosciences Synthetic Biology Jan. 5 South San Francisco 37% of its workforce 122 45
Focus on cell-based treatment for acute myeloid leukemia and hepatocellular carcinoma.
Strand Therapeutics Biotechnology Jan. 26 Boston 18% of its staff (19 employees) 100 18
Focus on mRNA-based cancer therapy STX-001. Layoffs affect 19 employees. Focus shift from platform to pipeline.
Thermo Fisher Scientific Scientific Research Services Jan. 4 Petaluma, Calif. 74 employees 130,000 74
Closing site due to lease expiration.