In 2025, layoffs in biopharma and related sectors, including Contract Research Organizations (CROs), have surged significantly. The first half of 2025 saw 128 rounds of layoffs in biopharma, representing a 32% increase over the same period in 2024. This trend suggests the industry may surpass 2024’s total layoffs if the rate continues. The layoffs are widespread, affecting small biotechs, mid-sized firms, and large pharmaceutical companies.
While much of the coverage focuses on pharma and biotech firms, CROs are also experiencing layoffs and restructuring, although specific large-scale layoffs in CROs are less frequently highlighted. Industry insiders report quiet layoffs and organic downsizing in CROs, with many waiting to see the impact of the latter half of 2025 before major announcements. Staffing pressures persist, and job security varies by specialty and employer.
Notable layoffs in pharma indirectly impact CROs due to workflow changes. For example, Bristol Myers Squibb (BMS) has announced multiple rounds of layoffs in 2025, totaling over 2,200 jobs planned for elimination by year-end as part of cost- cutting and strategic realignment. These reductions affect research and development and operational efficiency. Similar cuts have been reported at several biotech companies, leading to significant reductions in workforce sometimes up to 30-75% in smaller clinical-stage biotechs.
Despite the downsizing, some segments of the pharma services industry are expected to benefit as displaced talent from biopharma seeks new roles in service providers. Clinical trial site networks and pharma software companies, which have seen past staffing shortages, are reportedly experiencing more stable labor markets potentially owing to this talent shift.
In summary, 2025 continues to see pronounced layoffs across pharma, biotech, and related service sectors, including CROs. Industry observers expect ongoing caution in hiring and further adjustments in the coming months, with some CROs still assessing their staffing needs amid these pressures. If you want, I can share specific recent layoff examples from CROs or further detail industry segments most affected.
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The pharmaceutical and biotech sectors are witnessing ongoing waves of workforce reductions in 2025 as companies respond to pipeline disappointments, patent expirations, and an evolving regulatory landscape. Financial pressures combined with strategic realignments are driving these layoffs, as firms grapple with steady revenue losses and seek to optimize operations.
Around the world, layoffs have been announced across major corporations and emerging biotechs. These cuts are associated with a need to redirect resources toward growth areas while trimming expenses in less profitable or stalled programs. The transition is accentuated by rapid technological changes, including advancements in AI-driven drug discovery, influencing how talent and capital are allocated.
Some of the largest companies implementing job cuts this year include:
Among biotech firms, notable workforce reductions include:
This pattern is echoed by many smaller biotechs undergoing restructuring to preserve liquidity amid increasingly challenging funding conditions. While Pfizer has not announced layoffs in 2025, it continues aggressive expense reduction measures initiated in 2024 as part of its 'Cost Realignment Program'. These layoffs highlight the sector’s ongoing stress as traditional pharmaceutical business models evolve under competitive pressures, drug patent cliffs, and rising development costs coupled with the pressure to innovate rapidly. Despite this difficult environment, the industry’s technological transformation, especially with AI drug discovery and precision medicine, suggests strategic reshaping rather than pure contraction. As these workforce changes unfold, industry observers note that downstream service providers may absorb some displaced talent. Contract research organizations (CROs), clinical trial site networks, and pharma software companies experiencing prior staffing shortages could benefit as experienced professionals seek new opportunities. This dynamic illustrates the complex balance of contraction, innovation, and talent redistribution characterizing pharma and biotech in 2025.
In 2025, the Contract Research Organization (CRO) industry is experiencing robust growth and innovation, driven by rising demand for clinical trials across pharmaceutical and biotech sectors. Here is an overview of best leading CROs and their offerings shaping the landscape this year:
| CRO Name | Headquarters | Key Offerings & Specialization | Notable Clients / Highlights |
|---|---|---|---|
| IQVIA | Durham, NC, USA | Full-service CRO; Strong in data science, analytics, and tech-enabled trial designs | Clients include Novartis, Merck; $15B revenue; large global scale |
| ICON plc | Dublin, Ireland | Full-service with focus on clinical trials phases I-IV, biometrics, regulatory affairs | Clients include Pfizer, Bristol Myers Squibb; $6.5B revenue |
| Parexel | Newton, MA, USA | Late-phase and full-service trials | Clients like GlaxoSmithKline, AstraZeneca; 19,000+ employees |
| Syneos Health | Morrisville, NC, USA | Full-service CRO with comprehensive clinical and commercial solutions | Clients include Eli Lilly, Johnson & Johnson; $5B revenue |
| Medpace | Cincinnati, OH, USA | Niche expertise in oncology and rare diseases | Partners include Roche, Gilead; $1.5B revenue |
| PPD (part of Thermo Fisher) | Wilmington, NC, USA | Full-service CRO with strong capabilities in clinical development and lab services | Works with Sanofi, Pfizer; $4.7B revenue |
| WuXi AppTec | Shanghai, China | Full-service CRO with lab and manufacturing services | Collaborates with Bayer, Bristol Myers Squibb; $6B revenue |
| Labcorp Drug Development | Burlington, NC, USA | Full-service clinical trial management and drug development | Clients include Pfizer, GSK; $4.6B revenue |
| Charles River Laboratories | Wilmington, MA, USA | Preclinical and early-phase services | Clients include Biogen, Regeneron; $4B revenue |
| Novotech | Sydney, Australia | Asia-Pacific focused CRO with expertise in diverse therapeutic areas | Awarded Best CRO in Australia 2025; clients Gilead, Merck |
Overall, the leading CROs in 2025 combine comprehensive full-service capabilities with innovative, technology-forward approaches to clinical trial management, making them indispensable partners for accelerating drug development and navigating complex global regulations.
In 2025, the technology industry continues to experience significant layoffs, reflecting ongoing challenges amid rapid shifts toward AI, automation, and restructuring. Key points summarizing the comprehensive tech layoffs trend are as follows: