Nearly two dozen life sciences companies that were awarded Massachusetts tax incentives to create and retain about 1,000 combined jobs hit just 13% of that target in 2024. Ten awardees had reported layoffs last year, including Charles River Laboratories and Moderna.
Twenty-one tax incentive program awardees that agreed to create 1,053 life sciences jobs total in Massachusetts from 2020 to 2024 and retain them through at least last year—and often through 2027—fell short of that goal. The actual combined net increase in headcount as of Dec. 31, 2024, was 139, according to the Massachusetts Life Sciences Center (MLSC), which administers the program with the Massachusetts Department of Revenue.
Companies that fail to keep their hiring commitments are decertified from the program and must return incentives received to the state’s revenue department, according to MLSC policy. The amount that the 21 businesses owe and how much they’ve paid back so far were not specified in a terminations list MLSC provided to BioSpace. BioSpace contacted the quasi-public agency with several questions about the award terminations but did not receive responses prior to publication.
Of the 1,053 total jobs that awardees were expected to add and keep through at least last year, 928 were meant to be retained until at least the end of 2027 and 422 until the end of 2028.
The Boston Business Journal first reported about the life sciences companies missing the mark on hiring commitments, noting that it wasn’t the first time that’s happened. Joe Sullivan, special advisor to the CEO at MLSC, told the media outlet that 34% of tax incentive awards have been terminated since the program’s inception. He added that the awards in many ways are barometers of industry sentiment and trends and reflect hiring and industry headwinds.
Two companies on MLSC’s termination list were noted as voluntarily terminating their awards: Lyra Therapeutics and Tome Biosciences. In 2023, the Healey-Driscoll Administration and MLSC announced Lyra would receive $300,000 to create 20 jobs in Watertown and Tome $750,000 to add 50 positions in Watertown. The companies, which were to retain those jobs through 2027, terminated their awards prior to Dec. 31, 2024. Their net increase in headcount is marked “unknown” on the list.
Moderna also walked away from its award, according to the biopharma. In 2024, the Healey-Driscoll Administration and MLSC announced the company would receive just over $6 million to create 345 jobs in Norwood that year and retain them through 2028. In a statement provided to BioSpace, Moderna noted that because it did not anticipate meeting the requirements necessary to fulfill its award, it voluntarily terminated its incentive agreement and did not accept any benefits granted under it.
Among the 21 companies on MLSC’s terminations list, three were expected to create at least 100 jobs: Moderna; Charles River Laboratories, a contract development and manufacturing organization (CDMO) and contract research organization (CRO); and Sarepta Therapeutics, a biotech. According to tax incentive program announcements, Charles River was awarded $1.47 million to add 98 jobs in Wilmington in 2023 and retain them through 2027 and $875,000 to create 50 positions in Wilmington in 2024 and keep them through 2028. Sarepta was selected to receive $1.5 million to add 100 jobs in Cambridge in 2023 and retain them through 2027.
As of Dec. 31, 2024, Charles River did not have a net increase in headcount, while Sarepta’s net increase was 46, less than half of the biotech’s hiring commitment, according to the terminations list. BioSpace contacted both companies for comment. Charles River did not reply, while Sarepta did not provide a response prior to publication.
This year, the Healey-Driscoll Administration and MLSC announced tax incentive recipients in June and October. Added together, the $47.2 million in awards is expected to create 2,325 life sciences jobs in Massachusetts in 2025.
Nearly Half of Award Recipients Had Layoffs in 2024
Of the 21 companies on the terminations list, 10 had reported layoffs in 2024: Agilent Technologies, Charles River, Lonza Biologics, Lyra, Moderna, Mustang Bio, Tessera Therapeutics, Tome, Vedanta Biosciences and Vesigen.
- Agilent: The CDMO cut 184 employees in California effective in August 2024, according to a Worker Adjustment and Retraining Notification (WARN) Act notice. A company spokesperson told SFGATE the workforce reduction, part of a 3% layoff across operations and regions, was meant to help Agilent adjust to the market’s pace of recovery.
- Charles River: In September 2024, the company confirmed to BioSpace it was laying off 3% of its employees. Two months later, Endpoints News reported Charles River had let go of more than 6% of its workforce—over 1,300 people—since 2023.
- Lonza: The CDMO cut 218 employees in Hayward, California, effective in February 2024, according to a WARN notice. A company spokesperson told Fierce Pharma it would close its manufacturing facility in the city in the first quarter of 2025.
- Lyra: The biotech announced in May 2024 that it was laying off 87 employees—75% of its workforce—following disappointing Phase III results for its implant to treat chronic rhinosinusitis. Lonza also noted it had stopped manufacturing and commercialization efforts and wanted to sublease facilities to significantly reduce operating costs.
- Moderna: In March 2024, Endpoints News reported the biopharma had let go of an unspecified number of manufacturing and quality-assurance workers at its Burlington and Norwood, Massachusetts, facilities. Moderna attributed the layoffs to lower demand for COVID-19 shots.
- Mustang: The biopharma disclosed in an April 2024 SEC filing that it would cut about 81% of its staff and mostly complete the layoffs in Q2 of last year. Mustang noted that it expected the workforce reduction would reduce costs and preserve capital needed due to the fundraising environment and uncertainty regarding a pending facility sale.
- Tessera: In April 2024, Endpoints News reported the biotech was cutting 13% to 14% of its staff, representing fewer than 50 employees. The layoffs came as Tessera was trying to advance several genomically engineered candidates to clinical stage, according to Endpoints.
- Tome: The gene editing startup cut 131 employees—nearly all of its workforce—in November 2024, according to a WARN notice. The layoffs came a week after news circulated that unfavorable market forces had forced Tome to wind down operations and look at strategic options for the business.
- Vedanta: Company CEO Bernat Olle in April 2024 posted on LinkedIn that following a peak of manufacturing campaigns that supplied several midstage and late-stage clinical studies, the biopharma would cut 12 chemistry, manufacturing and controls employees. It would also reduce a similar number of contracts, Olle noted.
- Vesigen: In September 2024, Endpoints News reported the startup biotech was laying off an unspecified number of staff. Vesigen CEO Paulash Mohsen told Endpoints the company was evaluating strategic options.
Layoffs continued into 2025 for four of the 10 companies: Charles River, Moderna, Tessera and Vedanta. Charles River and Moderna disclosed multiple rounds of cuts this year, which included Moderna telling employees in July it will downsize its workforce by 10% globally to bring headcount to under 5,000. Tessera and Vedanta also announced layoffs in the second half of 2025. Tessera will cut its workforce by 17%, Fierce Biotech reported in July, while Vedanta’s CEO in August announced in a LinkedIn post that’s been taken down that the company was letting go of 20% of its staff.
Want more job market insights? Subscribe to Career Insider to receive our quarterly life sciences job market reports, career advice and more.
