Biotech and pharmaceutical professionals concerned about potential layoffs should focus on their company's development stage, asset performance, financing strategy, pipeline breadth, and adaptability rather than just general cost-cutting measures, Audrey Greenberg, venture partner and chair at Mayo, said in an emailed response published on June 18.
Greenberg outlined several early signs that may indicate a biopharma company is preparing for layoffs. "If a company is entering a period of tighter prioritization, signals may include shorter cash runway, delayed or reprioritized clinical programs, a hiring slowdown, fewer backfills, reduced discretionary spending, reduced use of consultants or external vendors, delayed expansion plans, or leadership language around focus, prioritization, capital efficiency, or extending runway," she said.
She emphasized that the most important indicators are those tied to value creation. For precommercial biotech firms specifically: "cash runway and the next clinical or regulatory milestone are critical." In single-asset companies, the outcome of one program can define the entire organization. Platform companies with multiple assets may have more flexibility to reallocate resources between programs. For commercial-stage companies, factors such as launch performance and revenue growth become key drivers.
Greenberg also explained that risk profiles vary by role within organizations: "Someone tied directly to a deprioritized asset may have a different risk profile than someone supporting a core platform... That is why I do not think layoff risk is evenly distributed across a company. It is often tied to the asset, milestone, function or business line that remains central to the company’s next value inflection." She added that seniority alone does not determine an employee's risk: "The better question is whether a role is essential to the next milestone and the next phase of value creation."
When assessing possible workforce reductions, Greenberg recommended looking for patterns instead of isolated signals. "A hiring pause may simply reflect discipline after a period of growth," she said. She advised employees to consider whether multiple factors point in one direction such as efforts to extend financial runway or shifts in operating models.
Ultimately, Greenberg encouraged employees not to try predicting every organizational decision but instead focus on understanding business context and building transferable skills: "In biopharma, the people who will thrive are those who can connect science, capital, technology, and execution," she said.
