2022 layoffs, pharmaceutical companies beat workers to break the defense?

This winter is winter for everyone. The wave of layoffs and layoffs spreads to all walks of life, and the "wave of layoffs" in large and small factories at home and abroad is rising one after another, and workplace anxiety stirs the already uneasy nerves of migrant workers.

"Cold" spreads, pharmaceutical company layoffs are vigorous!

This layoff storm naturally also blows to the pharmaceutical industry, domestic and foreign biopharmaceutical companies up to Big pharma, down to Biotech have "knife", shrinking personnel, Eisai, Biogen, Novartis, Sanofi, Merck, Gilead, Daiichi Sankyo and other large drugs successively released layoff news, large enterprises are still like this, small companies are even more difficult.

Since the beginning of this year, overseas pharmaceutical companies have reduced costs through framework restructuring and significant layoffs, such as Gilead Sciences' announcement on March 9 that it laid off 114 employees from its former immunological headquarters; In addition, Eisai disclosed plans to permanently close its wholly-owned U.S. subsidiary, H3 Biomedicine, with an estimated layoff of 88 employees; Rubius Therapeutics, the world's first red blood cell therapy company, also announced a 75% layoff of its workforce, "survival with a broken tail"; In early November, Novartis announced the closure of a gene therapy production site in Illinois, USA, eliminating nearly 300 jobs; OncoSec Medical plans to cut 45% of its workforce....

The domestic situation is not much better, the news of layoffs, disbandment of the team, and salary cuts is also endless, and a number of media released news that in April this year, the cardiovascular product line of Weijian Pharma notified layoffs and compensated N+1; Fosun Pharma was subjected to large-scale layoffs due to the delay in the launch of the new crown vaccine; Previously, a number of media reported that WeDoctor optimized its business line and may further lay off employees, reducing the number of employees to about 2,500....

After reading it, I can't help but sigh! This year's industry environment is really cold.

Why are they all wintering?

The general environment is affected by the global economic recession, changes in the international situation, the difficulty of research and development of new drugs, fierce market competition and financing obstruction, etc., China's medical reform and the normalization of centralized procurement have also forced domestic pharmaceutical companies to accelerate their transformation.

Specific to the pharmaceutical companies themselves, the reasons for the layoffs of different pharmaceutical companies are different. Some are for the sustainable development strategy of the enterprise, adjust the marketing strategy; Some are due to the failure of the drug development pipeline, and layoffs extend cash flow; Others are because the company is already short of funds, so it has to save operating costs, streamline its business, and invest in a more advantageous business.

Behind the layoffs is actually a "money shortage", under the cold economic winter, open source has become extremely difficult, and various pharmaceutical companies are worried about their own capital chain, so they have played a "fancy self-help trick", closing buildings, selling factories, selling pipelines, and layoffs have been staged... Biogen laid off and subleased experimental sites and facilities, and Oxford Biomedica not only laid off employees but also sold factories, a series of simple and crude operations.

Biopharmaceutical companies that recently laid off jobs include Cyclerion Therapeutics and OncoSec Medical. On Oct. 6, Cyclerion cut 45% of its workforce, with an estimated annual savings of $4.1 million, to switch to mitochondrial disease; On October 4, OncoSec announced a 45% layoff in order to reduce operating expenses and prioritize the development of TAVO. It is reported that as of July 31, OncoSec currently has only $19.47 million in cash and equivalents on hand, R&D expenses of Q9 of 20.5 million, and administrative and operating expenses of $37 million, which is extremely tight [8]. In fact, the "money shortage" is the root cause of the layoffs, and Cyclerion Therapeutics faces the same problem.

It is worth mentioning that among the companies that laid off employees, Genocea faced dry cash flow, layoffs and delistings, and disappeared from NASDAQ. Some Biotech companies have laid off employees and cut pipelines, and they can only choose to go bankrupt.

Don't sell anxiety, medicine people, please find your motivation!

Objectively speaking, the current economic situation is indeed a little bad, what should be earned is not earned, everyone's pockets are held, no one has an easy life, but life has to go on, rather than selling anxiety, it is better to actively deal with it.

In fact, there are still many pharmaceutical companies recruiting, and the competition for talents by enterprises is also at any cost, do not be too anxious, carry things, can fill pits, dare to explore new boundaries of things, and strive to make yourself that irreplaceable person, you will also be the person who competes for enterprises.

There is also an optimistic factor: the pharmaceutical industry is an industry that never declines, and we have to admit it, because health and medicine are indispensable as long as humanity is in the day. The rest only needs to adjust your strategy in time, strive to adapt to the rapidly changing environment, and keep up with the pace of change.

The last sentence has to be said: In 2022, please cherish your boss!