The layoffs will heavily affect Vertex’s operations in Rhode Island, where the biotech will consolidate three facilities into one.
Just months after shelving its cell therapy–device combo for type 1 diabetes, Vertex Pharmaceuticals is parting ways with 140 employees, according to a Worker Adjustment and Retraining Notification letter sent last week.
The layoffs will heavily focus on the company’s Rhode Island operations, where 125 employees will be affected, as per the state’s WARN posting. There, Vertex is consolidating its three Providence sites, which currently form somewhat of an “integrated campus” in the city, into just one location, as per the WARN letter. “We presently expect this action to be permanent,” the biotech wrote.
Citing a company spokesperson, The Providence Journal reported that the layoffs are connected to the discontinuation of the company’s diabetes therapy, dubbed VX-264. “Certain roles related specifically to the VX-264 program have been eliminated,” the spokesperson told the publication.
Vertex discontinued the development of its diabetes drug–device combo VX-264 in March after underwhelming Phase I/II data that showed the cell-device combo was safe but unable to significantly increase C-peptide levels during a mixed-meal tolerance test, suggesting that it could not sufficiently boost insulin production. Vertex absorbed a $400 million impairment charge in connection with the discontinuation.
Beyond its diabetes dilemma, Vertex’s broader business has absorbed additional bad news of late. In the first quarter of 2025, the biotech brought in $2.77 billion, which is a 3% year-on-year growth but also falls 3% below the analyst consensus earnings estimate. Vertex shrugged off the Q1 miss by focusing on the strong launch for its non-opioid pain therapy Journavx. Speaking to investors during the earnings call, Senior Vice President for Investor Relations Susie Lisa touted the “tremendous receptivity” to Journavx.
Vertex is weathering macro headwinds, too. The gene therapy space, in which the company has been trying to establish itself as a leader, has been having a rough time in recent months. In this environment, Vertex was forced to cut a gene therapy pact with Verve in February and to discontinue work on adeno-associated virus vector technology last month.
The newly announced layoffs will take effect on Aug. 5, and Vertex will provide the affected staff with severance and career counseling, as well as consider them for other internal opportunities, according to the WARN posting.
