European Biotechs Resort to Layoffs

Since redundancies in Europe are expensive and politically sensitive, companies have tended, where possible, to find other ways of cutting costs. The prolonged biotech winter is leaving many European biotechs with few options besides layoffs, however.

The biotech cash crunch is a global phenomenon, but historically US and European companies have responded differently. US firms are far quicker to reduce cash burn rates through layoffs. In Europe, where the political pain of layoffs can be extreme, companies generally try other solutions first—spin-offs, for example, or trade sales. Then any necessary layoffs become the responsibilities of the new owners. And when European companies do need to make layoffs, their US operations are often the first to feel the knife—the case, for example, following the merger which created Aventis SA[See Deal].

But unlike in previous biotech downturns, the current financing drought in capital markets is so acute that European firms are...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on In Vivo for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Global Vision

Global Pharma Interest In Korea Undeterred Despite Political Roller Coaster

 
• By 

Despite recent political turmoil, outside investor and corporate interest in South Korean biopharma innovation appears robust or even increasing.

Turning Defense Into Attack: Snapshots Of A Changing Medtech Market And How To Respond

 
• By 

Against a backdrop of shifting trade policies, the end of multilateral market approaches and renewed focus on supply chain resilience, medtechs are doubling down on innovation in products and processes – using AI – and keeping unmet needs and outcomes in the center of the target.

UK Bets On Regulatory Innovation As Competitive Advantage In Synthetic Biology

 
• By 

The UK government has prioritized synthetic biology and created a "concierge service" for biotechs just as the US cuts science funding.

Chinese Firms Build Obesity Clinical Pipeline But Face Wider Hurdles

 
• By 

Despite the ability to initiate clinical trials quickly and having strong manufacturing capacity, Chinese companies are facing multiple challenges in the obesity space.

More from In Vivo

Execs On The Move: June 2025

 
• By 

An interactive look at recent executive-level company changes and promotions in the biopharma, medical device and diagnostics industries.

AI In Biologics Discovery: The Expensive Bet On Unproven Promise

 
• By 

Despite limited evidence of commercial impact, pharmaceutical companies are making massive strategic investments in AI biologics platforms. The question isn't whether the technology shows promise; it's whether that promise can translate to measurable business results.

Kris Joshi Named Norstella CEO, Prioritizes AI Innovation

 
• By 

Joshi joins the parent company of Citeline, which houses flagship publications In Vivo, Scrip and Pink Sheet, to focus on AI, business harmonization and long-term growth.