The number of biopharma companies announcing or projecting layoffs slowed in the first quarter of 2026, according to an Apr. 16 report from BioSpace. In Q1 2026, 35 companies made or planned workforce reductions, compared to 74 in the same period last year.
This trend matters because it signals a shift in how biopharma firms are responding to ongoing industry uncertainty, particularly around funding and employment stability. The decline may reflect more cautious decision-making after what some observers say was an overreaction by companies last year.
Ira Leiderman, healthcare managing director at Cassel Salpeter & Co., said that the difference between this year and last is notable: “You have funds, you hire people, or you at least maintain your head count as you have it.” He added that while last year “people were scared,” this year “people are worried.”
Despite fewer companies cutting jobs, total affected employees rose from 5,926 to 6,593 due largely to Viatris’s plan to cut up to ten percent of its global workforce—about three thousand positions—over the next three years. Evotec also announced up to eight hundred job cuts as part of a global reorganization. Job seekers may face challenges finding new roles since hiring activity remains subdued overall; however, BioSpace data shows job postings increased five percent in February and seven percent in March.
Layoffs were concentrated in California and Massachusetts during Q1. Eleven biotechs and pharmas reduced staff in Massachusetts and eight did so in California. Both states also reported some of the highest unemployment rates nationally for January: California at 5.4% and Massachusetts at 4.7%. Takeda’s layoffs will affect five states—the most among reporting firms—with Tessera Therapeutics, IO Biotech, and SonomaBio also planning multi-state reductions.
Looking ahead for the rest of the year, Leiderman said he expects layoff levels could remain stable but might rise toward year-end as budgeting for next year begins: “I think we may see more towards year end when people kind of have a guess at what next year is going to look like when they have to start budgeting for ’27.” He concluded with cautious optimism about future funding: “There’s a lot of money on the sidelines… still waiting to go to work.”
Layoff numbers exclude contract development organizations and medical device firms; figures are based on company press releases and official filings compiled by BioSpace.
