Biotech job cuts continue as three more companies slash workforces

Karyopharm Therapeutics, Century Therapeutics, and Pacira BioSciences all announced layoffs at the end of last week, reflecting broader biopharma sector challenges driven by funding pressures and market volatility.

Why it matters: The three biotech companies have different reasons for the layoffs. However, each reason reflects wider trends already observed among many biotech companies.

1. Conservative market:

• Karyopharm Therapeutics is laying off 20% of its workforce—its second round of cuts this year—amid ongoing struggles to find strategic financing or partnership deals.

• The layoffs highlight deepening financial strain at the oncology biotech, which has a $1.6 billion accumulated deficit. Karyopharm’s lead drug Xpovio brought in $30M last quarter, down $5M from Q1 2024.

• Its early-stage asset, eltanexor, for myelodysplastic neoplasms, showed modest Phase 1/2 results.

2. Failing drugs:

• Century is halving its workforce and losing key executives to streamline focus on high-value programs.

• Earlier this year, Century ended a Phase 1 cancer trial of its lead CAR-NK program, CNTY-101, and decided to pivot the drug to autoimmune diseases.

3. Efficiency savings:

• Pacira BioSciences is laying off 71 employees (8% of its workforce) as it retires a 45-liter manufacturing suite in San Diego to fully shift to more efficient, higher-capacity facilities.

• The layoffs are expected to save $13M annually.

Big picture: The biotech industry is undergoing a correction, with layoffs becoming a frequent tool to preserve cash. As venture funding tightens and IPO windows remain closed, many companies are forced to downsize or re-evaluate pipelines and partnerships.