SHERIDAN, WYOMING – July 25, 2025 – Genentech has confirmed another round of workforce reductions at its South San Francisco headquarters, cutting 87 jobs effective September 15, 2025. The move comes as part of a broader, ongoing strategy to recalibrate operations and align resources with evolving scientific and business priorities.
This latest reduction, disclosed in a recent WARN Act notice, marks the second round of layoffs at the Roche subsidiary within two months. In June, Genentech had already parted ways with 143 employees at the same location. A company spokesperson had stated at the time, “Periodically, adjustments and decisions are necessary regarding the right makeup of our workforce within our company’s various functions,” emphasizing that the realignment is aimed at better meeting patient needs and advancing novel therapies.
Part of a Long-Term Realignment Strategy
Over the past 15 months, Genentech has implemented a series of targeted workforce adjustments:
- In April 2024, the company reduced headcount by 3%, affecting approximately 400 positions across various departments.
- Shortly thereafter, Genentech exited a $3 billion collaboration with Adaptimmune focused on allogeneic T cell therapies.
- In August 2024, the company restructured its oncology operations, dissolving the cancer immunology unit and consolidating its research under the molecular oncology umbrella. This shift also led to 93 job losses at the South San Francisco site.
At the time, Genentech explained that “shifts in the science of immuno-oncology” necessitated the organizational changes.
Strategic Investment in Next-Generation Therapies
Despite the workforce reductions, both Genentech and its parent company Roche continue to make substantial R&D investments, particularly in high-potential therapeutic areas:
- In May 2025, Genentech expanded its alliance with Orionis Biosciences, committing over $2 billion to advance molecular glue therapeutics targeting “novel and challenging” cancer indications. This builds on the original 2023 partnership, which began with a $47 million upfront payment.
- Roche also entered into a $1 billion deal with Innovent to co-develop IBI3009, an antibody-drug conjugate aimed at small-cell lung cancer and neuroendocrine tumors.
- Beyond oncology, Roche is diversifying its portfolio with a $5.3 billion collaboration with Zealand Pharma to develop petrelintide, an amylin analog designed for weight-loss treatment.
Shift Toward Biomanufacturing and Geographic Expansion
While trimming headcount in California, Genentech is concurrently ramping up investments in biomanufacturing capabilities in North Carolina. Announced in May 2025, the company’s $700 million pledge includes the construction of a state-of-the-art facility for producing next-generation obesity therapies. Once operational, the plant is expected to create 400 long-term manufacturing positions, alongside approximately 1,500 construction-related jobs.
Strategic Implications for the Biopharma Industry
Genentech’s ongoing restructuring highlights a broader trend in the biopharmaceutical industry: balancing workforce agility with bold investment in scientific innovation. As companies shift away from earlier therapeutic bets and pursue next-generation platforms—such as molecular glues, ADCs, and metabolic treatments—operational recalibration becomes a strategic necessity.
The company has not publicly commented on whether further layoffs are planned, but the cadence of announcements suggests continued evaluation of organizational structures in response to market demands and evolving scientific priorities.
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