BioSpace Layoff Tracker 2023: Applied Molecular Transport, Satsuma, 9 Meters and More Cut Staff
With 2022 in the books, many in the biopharma industry are looking back at the year that's passed and noticing trends that may help predict what's to come in 2023.
2022 saw myriad ups and downs in terms of the economy, and as it ebbed and flowed, so too did the job market.
As the COVID-19 pandemic waned, rumors of a potential recession began to circulate, causing biotechs and pharma giants alike to implement cost-reduction strategies. This included industry leaders like Novartis, GSK, Bristol Myers Squibb, AbbVie and more.
Even so, many others celebrated expansions and growth throughout the year, announcing plans to open new facilities and hire additional team members to fill them.
BioSpace followed the layoff trend throughout 2022 and will continue to be your source of news for job cuts and restructuring initiatives in 2023. Follow along as we keep you up to date on which companies are tightening their belts and cutting staff in the new year.
Applied Molecular Transport, Inc. (AMT) is slashing its workforce by approximately 57%, according to a March 28 announcement. Tahir Mahmood, Ph.D. will step down as CEO and be replaced by President and COO Shawn Cross.
Satsuma Pharmaceuticals announced plans to lay off 36% of its staff, starting March 31. effective this Friday. This comes after the company announced results from a Phase III trial studying its migraine treatment, STS101, and submitted an NDA to the FDA earlier this month.
9 Meters Biopharma announced it is cutting about half of its workforce in an effort to extend its cash runway. The announcement came as part of its fourth-quarter financial report.
Merck KGaA's EMD Serono plans to cut six members of staff research center in Billerica, MA, beginning May 22, according to a Massachusetts WARN report. In January, the company announced plans to cut 133 employees from the same location. This comes a few months after the biotech announced it planned to prioritize R&D and rely more heavily on its partnerships for drug development.
Ferring Pharmaceuticals is closing its research facility in San Diego, CA and laying off 89 employees as a result. According to a WARN notice filed with the state of California, the layoffs will be effective May 26.
Evofem Biosciences is cutting eight staff members just four months after cutting 39 jobs. The company also plans to cut its CEO's salary by 40% in an effort to save cash.
Amgen is cutting 450 members of its workforce, according to a Reuters report. This is Amgen's second round of layoffs this year; the first, in January, included 300 members of staff.
Vaxart, Inc. plans to reorganize its pipeline to prioritize its oral norovirus vaccine program and push back clinical trials for its COVID-19 vaccine. The reorganization includes cutting about 27% of staff in an effort to extend cash flow into 2024.
Olema Oncology announced it is shifting its focus to advancing OP-1250, a treatment for ER+/HER2- metastatic breast cancer, into Phase III. The restructuring will include cutting about 25% of its workforce.
Neoleukin Therapeutics announced it is reviewing strategic alternatives that could include a sale, merger, divestiture of assets, licensing or other strategic transaction. As a result, the company is cutting 70% of its workforce in the first half of 2023.
atai Life Sciences announced it has cut staff by about 30% as part of a in order to extend its cash runway into the first half of 2026. The company stated the decision came after a strategic review of its pipeline in an effort to enhance efficiency and narrow its focus.
Coherus BioSciences announced in its fourth-quarter report that it has cut about 60 full-time and part-time employees from its payroll as part of a restructuring initiative. The company's operating expenses for this year are nearly $100 million lower than those projected in April 2022.
MorphoSys AG plans to drop its pre-clinical programs and cut 17% of its workforce to extend its cash runway. The cuts will take place at the company’s Planegg headquarters, and a total of 70 employees will lose their jobs.
G1 Therapeutics released its full-year 2022 financial report that stated it has cut its headcount by about 30% to reduce operating expenses in 2023. This comes two weeks after the biotech ended a late-stage study of its lead candidate in colorectal cancer, causing shares to plunge 50%.
Theravance Biopharma is discontinuing research activities for its JAK inhibitor program in lung inflammation and reducing its headcount by about 17%. The strategic realignment folows a letter from one of Theravance’s largest shareholders, Irenic Capital, urging the company to review its governance structure and reassess its business strategies.
ObsEva, a women's health biotech based in Switzerland, is cutting several staff members from its executive team in the U.S. and its board of directors. These cuts include the company's CEO, CMO and several others.
Graphite Bio announced it is discontinuing the development of nulabeglogene autogedtemcel (nula-cel), its lead asset. Simultaneously, the Bay Area biotech is launching a corporate restructuring program that will shave off about 50% of its workforce.
Impel Pharmaceuticals is implementing a restructuring initiative that includes cutting staff by 16%. It plans to drop its INP105 treatment for acute agitation and aggression in autism spectrum disorder and focus on developing its Trudhesa nasal spray.
Jounce Therapeutics announced plans to merge its business in an all-stock deal with clinical-stage biotech Redx Pharma. This news came one day after the biotech announced a restructuring plan that included cutting 57% of staff.
National Resilience Inc. announced plans to sell a manufacturing site in Marlborough, MA and scale back operations at another in Allston, MA. The decision will result in about 213 job cuts in total.
Aileron Therapeutics announced it plans to drop its its lead candidate, ALRN-6924, after it did not meet the primary or secondary endpoints in a Phase 1b trial studying the candidate in breast cancer patients. As a result, the company will cut its staff from nine employees to three.
Grifols announced a comprehensive plan to save money and resources that will result in 2,000 U.S. job cuts. The company stated its goal is to save approximately $428 million USD in 2023.
Frequency Therapeutics is cutting 55% of its workforce due to its decision to drop all programs designed to treat Sensorineural Hearing Loss (SNHL). This comes after its candidate, FX-322, did not meet the primary endpoint in SNHL patients in a Phase IIb trial.
Eliem Therapeutics is dropping a depression drug candidate that was heading into Phase II and laying off 55% of staff in an attempt to stretch its cash runway into 2027.
Aligos Therapeutics announced it has implemented a pipeline reprioritization resulting in a staff reduction of about 25%. The biotech will now prioritize its NASH and COVID-19 assets, including its NASH collaboration with Merck.
Thermo Fisher Scientific will cut a total of 230 jobs at several sites in San Diego County, CA. This comes after the pharma reported a significant drop in sales of its COVID-19 tests in 2022.
Magenta Therapeutics is cutting up to 56 positions from its workforce - about 84% of its total staff - according to a filing with the SEC. This comes days after the biotech suspended the development of its clinical programs after a patient's death halted a Phase I/II trial.
Eisai Inc. filed a WARN notice with the state of New Jersey that stated it plans to cut 91 jobs. The job cuts will be effective on April 30.
Vyant Bio announced plans to cut its workforce in an attempt to extend its cash runway, though the announcement did not specify how many jobs would be cut. The decision is due to leadership's belief that "its stock price does not reflect the fundamental value of the business."
Medicago, a plant-based COVID-19 vaccine developer, announced it will shut its doors due to a slowdown in the COVID-19 pandemic. This follows the company's November announcement that it planned to lay off 62 employees at a North Carolina manufacturing facility.
Evelo Biosciences announced it has implemented cost-saving initiatives that include an unspecified amount of job cuts. In the same announcement, the company also stated its atopic dermatitis candidate, EDP1815, did not meet its primary endpoint in a Phase II trial.
Instil Bio plans to cut its staff to just 15 employees in an attempt to extend its cash runway through 2026. This additional reduction follows the company's December announcement that it planned to cut staff by 60%.
INOVIO announced plans to reorganize its pipeline to prioritize "operational efficiency" and cut staff by 11%. By cutting several programs, the company expects to save about $3.4 million.
Quince Therapeutics plans to reprioritize its pipeline and lay off 47% of its staff, according to an SEC filing. The new strategy follows the company's decision to sell its protease inhibitor portfolios.
Amgen is implementing organizational changes that include laying off approximately 300 team members to “better manage against industry headwinds,” a company spokesperson confirmed to BioSpace. The job cuts will mainly affect Amgen’s commercial team and will involve employees based in the U.S., the spokesperson said.
Finch Therapeutics announced it plans to discontinue the Phase III trial of its main asset, a bacterial infection drug dubbed CP101. As a result, it will cut about 95% of its workforce. Finch cited a lack of funding and partnerships to develop the drug as the reason behind the decision.
Merck KGaA's EMD Serono plans to cut 133 members of staff at its research center in Billerica, MA. This comes a few months after the biotech announced it planned to prioritize R&D and rely more heavily on its partnerships for drug development.
ReNeuron announced plans to restructure and cut staff by 40% as in an effort to stretch its cash flow until 2024. This comes two weeks after Catherine Isted resigned from her role as CEO.
Cyteir Therapeutics announced a restructuring initiative focused on prioritizing CYT-0851, an investigational monocarboxylate transporter inhibitor being studied in ovarian cancer. The shift will result in a 70% reduction in staff.
Akili Interactive Labs announced that due to the recent shift in the economic environment, it will reduce its staff immediately by approximately 30%, cutting 46 employees in total.
Verily Life Sciences, a unit of Alphabet Inc. formerly known as Google Life Sciences, plans to undergo a restructuring that includes cutting about 15% of its workforce - over 200 jobs in total.
Abzena laid off 66 employees from its San Diego, CA location, according to a WARN notice filed with the state of California.
Calithera Biosciences' board of directors has decided to dissolve the company and liquidate its assets, and most employees will be let go by the end of Q1. In 2021, Calithera bought two Phase II cancer assets from Takeda in an attempt to bounce back, but it announced in November that data from the assets had been delayed.
Editas Medicine announced it has cut 20% of staff, including Chief Scientific Officer Mark Shearman, Ph.D, in a pipeline reorganization. This follows the company's November announcement that it planned to press pause on its lead asset, EDIT-101, due to disappointing data.
Elevation Oncology has cut 30% of its staff, including CEO Shawn Leland. As part of the restructuring, Elevation has also decided to shelf seribantumab, its solid tumor therapy.
Century Therapeutics announced it plans to lay off 25% of its staff in order to extend cash flow for three candidates: CNTY-101 and CNTY-102 for B-cell malignancies and CNTY-107 for solid tumors.
Y-mAbs Therapeutics stated it will implement a restructuring plan that includes reducing its workforce by 35% by the end of May. The biotech stated it plans to prioritize Danyelza, its treatment for relapsed/refractory, high-risk neuroblastoma.
Athenex Pharma Solutions filed a WARN notice with the state of New York stating it plans to close a production facility in Clarence, NY, laying off 92 employees as a result. The company stated the decision was due to financial difficulty, though it did not specify the cause.
Axcella Therapeutics announced that in an effort to reprioritize its resources, it will prioritize its Long COVID program and slash its headcount by 85%.
TherapeuticsMD, Inc. filed a notice with the state of Florida that stated it plans to lay off its entire workforce, totaling 212 employees.
Instil Bio announced it is discontinuing the development of its unmodified tumor-infiltrating lymphocyte (TIL) therapeutic, ITIL-168, and laying off 60% of its staff.