Major pharmaceutical companies are undergoing significant restructuring to address what analyst Mitchell Kapoor described on June 24 as an “existential risk” to the industry. Between 2025 and 2030, nearly 70 blockbuster drugs are expected to lose market protections, leading to a projected $236 billion to $300 billion patent cliff, according to Kapoor, director and senior biotech equity research analyst at H.C. Wainwright.
To manage these challenges, biopharma companies have implemented cost-cutting measures that include workforce reductions and pipeline realignments. By the end of 2024, more than 20,000 jobs had been eliminated across the sector. That figure increased by 47% in 2025, with approximately 42,700 layoffs reported by BioSpace.
Takeda began a reorganization program in May 2024 after experiencing a significant profit decline for fiscal year 2023. The company let go of over 1,500 employees in mid-2024 and announced plans for an additional 4,500 layoffs during the fiscal year of 2026. Takeda also discontinued several drug development programs following clinical setbacks.
Pfizer launched a multi-year cost realignment program in October 2023 following declining revenues post-pandemic as demand for its COVID-19 vaccine decreased. The company aimed to reduce costs by $1 billion in that year and set further savings targets through subsequent years. Pfizer’s restructuring included abandoning some drug candidates due to safety concerns and preparing for key products like Eliquis losing exclusivity.
Bristol Myers Squibb (BMS) initiated a strategic productivity initiative in early 2024 targeting $1.5 billion in savings through workforce reductions and operational streamlining as it faces upcoming biosimilar competition for top earners Eliquis and Opdivo. BMS expanded its cost-cutting goal by an additional $2 billion through the end of 2027 while pursuing acquisitions such as Karuna Therapeutics and RayzeBio.
Novo Nordisk responded to competitive pressure from Eli Lilly by reorganizing leadership in early 2025 and announcing plans to cut around nine thousand jobs globally—an eleven percent reduction—to save about $1.25 billion within the year. Novo has shifted focus away from cell therapy toward core areas like diabetes and obesity treatments.
Merck is addressing looming patent expirations for Keytruda with a broad strategy involving both internal development efforts—such as partnerships with LaNova Medicines—and external collaborations focused on new cancer modalities including antibody-drug conjugates (ADCs). Kapoor said Merck’s approach represents “multiple shots around a core franchise.”
The restructuring efforts across these major firms reflect ongoing adaptation strategies intended to mitigate revenue losses from expiring patents while investing in future growth opportunities.
