US Genomics Sector Faces Major Job Cuts in 2025 Amid Market Volatility
United States, Thursday, 22 May 2025.
The US genomics industry experiences significant layoffs in 2025, driven by market volatility and funding shortages, threatening global biotech innovations. Over 25 companies, including Prime Medicine and 10x Genomics, are affected.
Wave of Layoffs Hits Major Players
The impact of this industry-wide downturn is particularly evident in established companies. Prime Medicine, based in Massachusetts, has announced a 25% workforce reduction and the departure of its CEO on May 20, 2025, affecting approximately 54 employees out of its 214-person workforce [1][2]. This comes as a significant blow, especially considering the company’s promising prime editing technology, which had shown potentially curative results with 58% DHR positivity levels in treating chronic granulomatous disease (CGD) [1].
Federal Funding Crisis
California-based 10x Genomics has implemented an 8% staff reduction, impacting approximately 100 employees, as part of a broader $50 million cost-cutting initiative [2][3]. The company’s vulnerability to federal funding changes is particularly notable, as 40-50% of its revenue stream relied on academic and government research funding [1]. The financial impact is evident in their Q1 2025 performance, with the company reporting a net loss of $34.3 million, though this represents an improvement from the $59.9 million loss in Q1 2024 [3].
Industry-Wide Impact
The crisis extends beyond individual companies, affecting the entire genomics sector. New York-based Lexeo Therapeutics has reduced its workforce by 15%, impacting approximately 11 employees [2]. Other significant cuts include Vor Bio’s dramatic 95% staff reduction affecting 147 employees, and Insitro’s 22% workforce reduction impacting 65 of its 230 employees [2]. The industry turbulence has also affected established players like Bristol Myers Squibb, which plans to lay off 516 employees starting May 9, 2025 [2].
Future Implications
The ripple effects of these layoffs threaten to slow breakthrough research in genetic medicine. With companies like 10x Genomics withdrawing their 2025 guidance and implementing significant cost-cutting measures [3], the sector faces a period of unprecedented uncertainty. The impact is particularly concerning given that early-stage academic research, crucial for breakthrough science, is experiencing significant funding constraints [1].