BOSTON–The biotech industry in Massachusetts has had a tough start to 2025, with layoffs continuing to climb.
According to the Boston Business Journal, at least 21 life sciences companies in the state have announced job cuts affecting more than 1,000 employees within the first quarter alone.
This figure is likely conservative, as some companies chose not to disclose the exact number of affected workers. The rising number of layoffs marks a significant increase compared to the first quarter of 2024, when 14 biotech firms in the Boston area cut around 330 jobs. By the end of last year, more than 4,940 employees had lost their jobs across the Massachusetts life sciences sector.
Several factors have contributed to the downturn, including reduced venture capital funding, uncertainty surrounding tariffs, fluctuating interest rates, and regulatory shifts at the Food and Drug Administration. The industry’s struggles are reflected in the market as well— the S&P Biotech ETF (XBI), a key industry benchmark, has dropped 11% since the beginning of the year, and biotech IPOs remain at a standstill.
With these economic and regulatory challenges, the outlook for the rest of 2025 remains uncertain.
(To read more from the Boston Business Journal article, click here.)
