Some companies did not survive the spring.

On March 10, f5 Therapeutics, a California‑based molecular glue biotech startup, announced its shutdown. Founder Gary Choy posted on LinkedIn, bringing a regretful end to an ambitious entrepreneurial journey.

f5 Therapeutics focused on targeted protein degradation.Over several years, Gary Choy led a team of about 10 people, using its proprietary NExMods™ platform to reshape drug discovery and identify new disease targets.

The company specialized in molecular glue — a novel approach believed to tackle traditionally “undruggable” proteins, with broad potential in oncology, immuno‑oncology, fibrosis, inflammation, and neurodegenerative diseases.

In recent years, giants including Pfizer, Novartis, Roche, Gilead, and Eli Lilly have invested heavily in this space.f5 had received support and recognition from Servier FAST, California Life Sciences (CLS) FAST, JLABS, and Founders Corner VC.

Despite strong scientific foundations and an ambitious pipeline, none of f5’s programs advanced beyond in‑vivo studies. After six years of operation, the company closed, discontinuing its antibody‑drug conjugate (ADC) exploration.

Gary Choy acknowledged that shutting down was extremely difficult.

He wrote on LinkedIn:The past few years have been exceptionally brutal for early‑stage biotechs.Funding for young platform startups has fallen to multi‑year lows.Dozens of startups with solid science have had to close.Against this backdrop, we fought as hard as we could and lasted as long as possible.

A week before f5’s shutdown, on March 3, EveryOne Medicines — the world’s first biotech focused on personalized therapies for rare genetic diseases — also closed.

The company had pinned its hopes on a new FDA approval pathway but failed to commercialize its customized therapies.Notably, the decision came less than a week after the FDA released its long‑awaited draft guidance for streamlined development of personalized therapies.

Endpoints News cited a source saying the FDA draft fell short of EveryOne Medicines’ expectations.The rules did not make commercialization feasible in the U.S., and imposed more restrictions than the UK’s pilot program.

In January, under the UK pilot, EveryOne treated a child with Niemann‑Pick Type C disease, a rare neurological disorder causing cognitive decline and early death.

The UK program offers efficient regulatory support:regulators approve the underlying process for drug development, manufacturing, and testing, rather than treating each personalized medicine as a separate, burdensome approval.

EveryOne had hoped the FDA would adopt a similar process‑based model.Instead, the FDA still required personalized gene therapies to be evaluated disease by disease — a major disappointment.

Another casualty is Rampart Bioscience, a gene therapy company focused on non‑viral DNA delivery.Founded in 2019, it raised $125 million in October 2023 and emerged into public view.After two undisclosed layoffs in 2025, its website went offline in early January 2026, and the company appears to have closed.

The first biotech casualty of 2026 came even earlier.On January 2, neuroscience startup Nido Biosciences shut down after its lead asset NIDO‑361 missed endpoints in a global Phase II trial.

Backed by top VC firms including 5AM Ventures, Abingworth, and Bessemer Venture Partners, Nido emerged from stealth in 2023 with $109 million, with participation from pharma giant Eli Lilly.Even so, it could not overcome clinical failure.

Fallen small biotechs meet their end for different reasons:cash burnout, technical barriers, policy disappointment, pipeline failures.But the outcome is the same: lights out, doors closed.

Other biotechs are fighting to survive — at the cost of layoffs.

On March 12, neuropsychiatry‑focused Vistagen Therapeutics launched a 20% workforce reduction.The trigger was a major setback for its lead pipeline candidate for social anxiety disorder.

In December 2025, Vistagen’s fasedienol failed to meet the primary endpoint in the pivotal Phase III PALISADE‑3 trial due to unexpectedly high placebo response.Its stock plummeted more than 80%.

To preserve cash to complete another ongoing Phase III trial (PALISADE‑4), Vistagen chose layoffs.Results are expected in the first half of 2026, and current cash runway is projected into 2027.

Vistagen is not alone.A week earlier, on March 5, five‑year‑old Alltrna announced its third restructuring: a 35% cut eliminating 19 roles, leaving just 36 employees.The official reason: “Accelerate our first engineered tRNA candidate toward the clinic to position the company for success.”

Alltrna had strong backing.Launched by Flagship in 2021, it raised $50 million in Series A and over $100 million in Series B.The leadership team included the daughter of Flagship’s founder, placing its starting line far above most startups.

The company bet heavily on liver‑related genetic diseases.Its lead program targets Arg‑TGA mutations linked to phenylketonuria and organic acidemias — its first clinical breakthrough.

Despite strong fundamentals, it has restructured three times in three years.In December 2023, right after a $109 million Series B, Alltrna reorganized.In August 2025, it cut 10% of staff.Now, another round.The high‑flying tRNA company is cutting every non‑core function to survive.

Some biotechs face an even more dire situation.

In January, with cash running out, Vedanta Biosciences — a sub‑100‑person microbiome biotech — cut half its staff and placed most remaining employees on unpaid leave to focus on its oral candidate VE303 in Phase III.

Founded in 2010, Vedanta focuses on the human gut microbiome to develop therapies for immune‑mediated and infectious diseases.It has raised a total of $355.7 million.

VE303 is in the Phase III RESTORATiVE303 study across over 200 sites in 24 countries.Supporting Phase II data showed that the high dose was well‑tolerated and reduced the risk of recurrent Clostridioides difficile infection by more than 80% vs placebo.

This was not Vedanta’s first layoff.In August 2025, after its candidate VE202 failed a Phase II trial in ulcerative colitis, the company cut 20% of staff (23 people).

VE202 was a key autoimmune asset developed under a $339 million collaboration with Johnson & Johnson in 2015, with J&J leading clinical trials.Its failure severely damaged Vedanta’s cash flow and strategy.

The list goes on: Sonoma Biotherapeutics, InflaRx, IO Biotech…

For most pre‑commercial biotechs living on pipeline promise,a major pipeline failure breaks their funding narrative.Cash burns, new funding dries up, but the story must continue.Layoffs become the only way to stop the bleeding.

Small biotechs cut jobs to temporarily stem losses.But even giants are feeling the pressure.

One of the largest personnel and asset restructurings comes from CRO giant Evotec, which unveiled its “Horizon” transformation plan:cutting about 800 jobs (one‑sixth of global staff) and closing four major sites worldwide.

Evotec currently employs around 4,800 people.From March 2024 to June 2025, it already cut 600 jobs — exceeding its original 400 target — and reduced R&D and operating sites from 19 to 14.

Under Horizon, facilities will shrink further to 10, with confirmed closures in Framingham, MA; Lyon, France; and Abingdon, UK.

Initial benefits are expected in late 2026, with full implementation by the end of 2027.Although restructuring will cost around €100 million in cash and non‑cash impairments from 2026 to 2028, Evotec expects annual operational savings of about €75 million by the end of 2027.

Amgen’s layoffs have been more low‑key.Under Maryland’s WARN notices, the company will cut 22 jobs at Horizon Therapeutics by early May.Horizon was acquired by Amgen for $27.8 billion in 2023.Now it is being integrated: “Organizational changes align operations and research strategy to better serve patients.”

These moves are just part of a global wave.Pfizer, Novo Nordisk, Merck, Takeda, and other major pharma have long used layoffs to navigate the downturn.

• Pfizer launched a cost‑reduction plan in 2023. By the end of 2025, it had cut over 6,000 jobs, from 81,000 to 75,000. It plans $7.7 billion in cumulative savings by 2027 and closed 10 underperforming plants. COVID vaccine and oral therapy revenue collapsed; 2025 revenue fell 2% year‑over‑year. Management openly says growth may not return until 2029–2030.
• Novo Nordisk announced 9,000 global layoffs in September 2025 (11.5% of staff), including 5,000 in Denmark. The goal: annual savings of DKK 8 billion by end‑2026, focusing resources on its fastest‑growing areas: diabetes and obesity.
• Merck launched a $3 billion cost‑cut program in August 2025, cutting 6,000 jobs (8% of staff) and closing its London R&D center. In 2026, it cut over 150 jobs at a U.S. vaccine site and halted HPV vaccine production, redirecting funds to oncology and core pipelines.
• Takeda’s layoffs are driven by the patent cliff. Its antidepressant Trintellix is losing exclusivity, affecting 243 field staff across 47 states and Washington, D.C. Still, Takeda is preparing for new launches and may add 400 commercial roles.

Overall, large pharma layoffs are tied to strategic restructuring and organizational optimization, planned and deliberate.They appear more orderly than small biotechs’ emergency moves, but reflect deeper shifts in the industry’s fundamental logic.

On the flip side: as some exit, others enter.

• AbbVie announced a $380 million investment to build two API plants in North Chicago, supporting next‑gen neuroscience and obesity drugs, creating 300 jobs. Full operation by 2029.
• Novartis selected Denton, Texas, for its fifth U.S. radiopharmaceutical production site, opening in 2028, creating 150–175 jobs including process engineers, QC analysts, and maintenance technicians.
• Johnson & Johnson, Genentech, and Eli Lilly have all announced expansions since late 2025, expected to add thousands of roles.

These signs confirm one truth:top players are still expanding — but more concentrated and precise.They are not hiring blindly; they are positioning for the next cycle.

BioSpace also noted a notable trend:companies are willing to rehire employees they previously laid off.

Angie Allen, Managing Partner at Kaye/Bassman, said employers are considering people they let go a few years ago.“You’re someone we know. You worked here, understand our way, culture, products. Bringing you back creates value.”

Theo Rowley, Novartis Talent Sourcing Partner, agreed but noted it remains the exception.Roles with the highest recall rates are in regulatory affairs, CMC, and clinical development — positions with long onboarding times and critical institutional knowledge.

Where some exit, others enter.

For professionals, the keyword for 2026 is not “recovery” — it’s divergence.Those with core skills and the willingness to adapt will still find opportunities.Those who wait passively risk being left behind in this structural shift.

This is not a year to coast.

Fallen companies and departed colleagues mark this cycle with stark realism.But hope remains.The industry does not stop moving.