atlanta jobs news tagged interest

[Last updated, July 13, 2024]

The biotech industry is witnessing a stark paradox in 2024. On one hand, there’s a group of biotech startups that are thriving, attracting nearly $3 billion in funding in Q1 2024 alone. Job openings in the sector are also considerable in several parts of the U.S., especially in the Greater Boston area, which is also seeing a wave of cuts.

On the other hand, the biotech sector is also experiencing a significant wave of layoffs. Major biotech and pharmaceutical firms like Amylyx Pharmaceuticals, Novartis, Genentech and Sanofi are among those affected. As Jonathan Norris, a managing director with HSBC Innovation Banking, noted in a January Wall Street Journal article, “It’s the have and have-nots right now in terms of access to capital.”

And the layoffs keep coming past the mid-way mark of the year. As of July 12, 2024:

Recent Major Layoffs in Biotech and Pharma (June-July 2024)

Novartis (July 11, 2024):

Laying off 29 employees in San Diego

Plans to eliminate approximately 100 more jobs as it winds down its research site

Part of a broader restructuring effort announced in April 2024

Indivior (July 11, 2024):

Cutting approximately 130 sales staff

Ceasing sales and marketing of its schizophrenia drug Perseris

Decision based on “highly competitive market and impending changes” in the treatment category

CureVac (July 3, 2024):

Reducing workforce by 30% (about 350 employees)

Part of restructuring its mRNA collaboration with GSK

Aims to create a “leaner, more agile organization” focused on technology innovation and RandD

Takeda (July 2, 2024):

Laying off 220 workers in Massachusetts

189 cuts in Cambridge and 31 in Lexington

Part of ongoing restructuring efforts, following previous layoffs in 2023 and early 2024

Aerovate Therapeutics (July 1, 2024):

Laying off 78% of its workforce (39 people)

Decision follows the Phase IIb failure of its candidate for pulmonary arterial hypertension

GeNeuro (July 1, 2024):

Laying off all but two of its staff members

Follows the Phase II failure of its candidate for long COVID

Cara Therapeutics (June 20, 2024):

Laying off 70% of its staff by the end of June

Discontinuing development of its candidate for moderate-to-severe pruritus in notalgia paresthetica

Barinthus Biotherapeutics (June 13, 2024):

Cutting approximately 25% of its workforce (about 33 employees)

Part of a “pipeline prioritization” focusing on programs in chronic hepatitis B and celiac disease

Big layoffs at Big Pharma driving surges in the numbers

In the second quarter, a number of Big Pharma companies announced significant layoffs contributing to the surge in numbers. Bristol Myers Squibb led the pack with 2,200 layoffs on March 15. Bayer followed with 1,500 layoffs on May 14 as part of CEO Bill Anderson’s vision for a simpler organization. Other Big Pharmas making significant cuts include Biogen (1,000 announced in March) and Kenvue, a consumer health company spun out of JandJ, laid off 920 employees (4% of its global workforce) in May.

Both layoffs and VC funding have increased since the beginning of the year (data curated in part from Intellizence and Crunchbase) — with layoffs spiking for periods in April and May as a result of significant layoff announcements.

The map below captures the disparity between the companies receiving VC cash and those cutting workers as of May 17:

As of May 22, the estimated number of job cuts across the sector has surpassed 20,000. The chart below shows the disparity between job cuts vs. funding. While both are up since the beginning of the year, job cuts have notably surged in April and May.

Data sourced through a combination of manual data curation, primarily from press release, and from the data-curation platform Intellizence.

If you spot anything missing in this article, feel free to let me know via LinkedIn.

Oncology, neurology hard-hit sectors

In 2024, oncology has been particularly hard hit by layoffs. Examples include2seventy Bio’s decision to slash 83 jobs in January and Freenome cutting118 employees in April. Neurology and CNS disorders have also borne the brunt, with Biogen announcing plans to cut a 1,000 positions in March, while Sio Gene Therapies trimmed 15 employees. Rare diseases have faced cuts. Amyotrophic lateral sclerosis–focused Amylyx Pharmaceuticals slashed 32% of its workforce, equating to 232 job losses. The infectious diseases field, which gained prominence during the pandemic, has dramatically cooled, with Vir Biotechnology and Novavax shedding one-fifth and one-quarter of their respective workforces.

Breaking down layoffs by type

The diagram below categorizes the reasons for layoffs in the biotech and pharma sectors, based on publicly disclosed statements from the companies. A single layoff could have multiple reasons.

Large and Midsized Companies:

Operational Reorganization: Many large companies have resorted to layoffs as part of broader efforts to streamline operations and improve efficiency. Similarly, Big Pharmas have undergone layoffs to realign their strategic priorities. Several large companies have experienced layoffs in the wake of disappointing clinical trial results or the discontinuation of drug development programs. Midsize companies have cut workers largely as a result of similar reasons.

Small Companies:

Small companies have implemented layoffs to focus on their most promising drug candidates and prioritize resources toward key projects. Some small companies have experienced layoffs as a result of challenges in securing funding or attracting investments in the current market conditions.

Breaking down layoffs by region

Early in the year, Massachusetts and California emerged as epicenters of biopharma layoffs in the U.S. Yet as of May, Eastern Pennsylvania, New Jersey, New York is home to the significant number of layoffs in the sector as well.

The Cambridge and Boston areas also saw notable companies affected, including Merck, Novavax, Pfizer, Biogen and Moderna.

Moving to the West Coast, California is another layoff hotspot. Companies like Genentech, Gritstone Bio, Illumina, Pacific Biosciences and Intellia Therapeutics announced significant layoffs.

Internationally, Southwestern Germany and Switzerland felt the sting of reductions at Roche, Takeda Pharmaceuticals and CureVac, amounting to hundreds of layoffs. Meanwhile, in Shanghai, LianBio reported a downsizing as it grappled with market pressures.

The bar graph below shows how the broader healthcare sector stacks up to other industries. Data from Kaggle:

Filed Under: Biotech