2025 Starts with a Jolt: Layoffs Hit the Life Sciences Industry Ahead of JPM
The J.P. Morgan Healthcare Conference 2025 has officially kicked off in San Francisco, sparking a wave of major announcements and deals across the life sciences sector. As the conference gains momentum, key agreements and funding rounds are driving significant shifts in the industry landscape. In the weeks leading up to the event, several players had already begun making moves in partnerships, acquisitions and fundraising.
However, just two weeks into 2025, January has already proven to be a challenging month for layoffs. Barely starting the year, four companies—IGM Biosciences, Y-mAbs Therapeutics, Passage Bio, and Shoreline Biosciences—have already announced plans to cut jobs as they reorganize their pipelines and business structures. This brings the total number of layoffs to over 10 biotech companies in the first few days of the year. These developments highlight a stark contrast to the optimism surrounding JPM 2025, underlining the industry’s ongoing struggles even as major players secure high-profile deals.
IGM Biosciences Cuts 73% of Workforce and Halts 2 Autoimmune Drug Programs
IGM Biosciences announced a major restructuring on January 9, cutting 73% of its workforce and halting development of two autoimmune drug candidates. The Mountain View, California-based biotech, which employed 198 people as of September 30, will lay off around 144 workers, leaving fewer than 55 staffers. This move follows disappointing results from Phase Ib studies of imvotamab in rheumatoid arthritis and lupus.
In addition to staff cuts, IGM will stop working on IGM-2644, a bispecific antibody T cell engager. CEO Mary Beth Harler explained that imvotamab’s B cell depletion results didn’t meet expectations, while strategic considerations led to discontinuing IGM-2644. This marks the second pipeline adjustment in under six months, after IGM shifted focus from oncology to autoimmune diseases in September.
IGM is now exploring ways to maximize shareholder value, including evaluating internal options and strategic alternatives. The company had about $183.8 million in cash and investments as of December 31. BMO Capital Markets downgraded IGM’s stock, noting that its partnership with Sanofi is now its only source of revenue. The firm also expressed uncertainty around future business development moves, citing limited visibility on timing and scope.
Y-mAbs Cuts Jobs Amid Strategic Shift to Radiopharmaceuticals and Danyelza Growth
Y-mAbs is restructuring its operations, resulting in a 13% workforce reduction as the company forms two new business units. The units will focus on advancing its radiopharmaceuticals platform and boosting the commercial potential of Danyelza, its neuroblastoma drug. Some roles will be relocated from Denmark to the U.S. to streamline operations, while the Danyelza commercial team will undergo minor adjustments to focus on growth opportunities.
The company’s pipeline is making strides with its SADA PRIT technology for radiopharmaceuticals. Y-mAbs is testing this approach in two clinical trials, including one for solid tumors. Initial data from the GD2-SADA Phase 1 trial shows promising tolerability, with no dose-limiting toxicities. The company expects to share more data in the second quarter of 2025.
Y-mAbs expects to earn $88 million in total revenue for 2024 and reports having $67 million in cash to support operations through 2027. The strategic shift is meant to optimize resources and accelerate development of its novel treatments while ensuring the commercial success of Danyelza.
Passage Bio Lays Off 55% of Workforce as It Focuses on Frontotemporal Dementia Treatment
Passage Bio is cutting 55% of its workforce, which will reduce its staff from 58 to 26 employees. The cuts are expected to happen quickly and could affect about 32 people, though it’s unclear if both of its locations—Philadelphia and Hopewell Township—will be impacted. This move is part of the company’s plan to extend its cash runway into 2027.
In addition to layoffs, Passage Bio will transition to an outsourced analytical testing model to support its PBFT02 program. The company is focusing on advancing its clinical trial for frontotemporal dementia (FTD) with granulin mutations, which has shown early positive results in increasing cerebrospinal fluid progranulin expression. The company plans to share additional data in the second half of 2025.
To support its future goals, Passage Bio has also improved its PBFT02 manufacturing process. The new process promises better yield and lower costs, which the company hopes will aid in advancing its treatment and future regulatory discussions.
Even More Biotech Layoffs Across the Industry: Downsizing Amid Shifting Priorities
Shoreline Biosciences is reducing its workforce as it reevaluates its cell therapy collaboration with Kite Pharma. While the company has not disclosed the exact number of layoffs, CEO Kleanthis Xanthopoulos confirmed the cuts. Shoreline originally teamed up with Kite in 2021, with plans to focus on CAR-T therapies for blood cancers, but has since shifted its focus to autoimmune diseases. The future of the collaboration remains uncertain.
Intellia Therapeutics is also making significant cuts, reducing its workforce by 27%. The company is halting its investigational med for alpha-1 antitrypsin deficiency and other research-stage programs. This move comes as Intellia looks to streamline operations and focus on its late-stage treatments, NTLA-2002 for hereditary angioedema and nex-z for ATTR amyloidosis. With $862 million in the bank, the company expects this to be enough to carry it through 2027.
Meanwhile, Galapagos is restructuring, splitting into two entities and cutting 40% of its workforce. The company will focus on innovative medicines, including oncology and immunology, while the cell therapy branch will prioritize CAR-T treatments. Galapagos is also regaining control of its pipeline from Gilead. This restructuring aims to improve growth potential but will result in the loss of approximately 300 jobs.
Cassava Sciences is laying off 10 employees after the failure of its Alzheimer’s drug, simufilam, in a phase 3 trial. The company is discontinuing the trial and shifting focus to conserving cash. Cassava also plans to halt a planned biomarker analysis to reduce costs. Similarly, Scribe Therapeutics is reducing its workforce by 20% to refocus resources on its cardiometabolic pipeline as it moves into clinical development.
Biotech Struggles in 2025: A Rocky Start and Ongoing Workforce Reductions
The start of 2025 has been tough for the biotech sector, with over 10 companies announcing workforce cuts within the first 10 days of the year. Last year, layoffs saw a slight increase compared to the previous year, with a notable rise in the number of rounds tracked. The highest concentration of cuts occurred early in the year, followed by another surge mid-year. Big Pharma also experienced a significant jump in layoffs compared to the prior year, though no major pharmaceutical companies have been included in the layoff reports so far this year.
©www.geneonline.com All rights reserved. Collaborate with us: [email protected]