New Jersey’s pharmaceutical sector, long a cornerstone of the state’s economy, is experiencing another round of workforce reductions as two major companies—Novo Nordisk and Bristol Myers Squibb (BMS)—announce substantial layoffs in the Garden State. These changes reflect broader global restructuring initiatives, strategic cost-saving measures, and shifting competitive pressures in the pharmaceutical and biotechnology markets.
Novo Nordisk, the Danish drugmaker behind high-profile medications such as the diabetes treatment Ozempic and the weight-loss drug Wegovy, revealed plans to cut 263 jobs at its U.S. headquarters in Plainsboro by December 31, 2025. This announcement is part of a larger global effort that will see 9,000 positions eliminated worldwide—about 11 percent of its total workforce—with the company projecting $1.3 billion in annual savings by the end of 2026. Novo Nordisk’s decision comes as it faces intensified competition in the GLP-1 weight-loss market, particularly from rival Eli Lilly and lower-cost compounded alternatives.
The company emphasized that the restructuring is designed to streamline operations and focus resources on core growth areas, especially diabetes and obesity treatments. In a statement, CEO Maziar “Mike” Doustdar acknowledged the difficulty of letting go of talented staff but framed the initiative as a strategic move to make Novo Nordisk faster, more agile, and better positioned for future innovation. The layoffs follow Doustdar’s recent appointment as CEO, succeeding Lars Fruergaard Jørgensen, signaling a new direction for the company’s U.S. operations.
Bristol Myers Squibb is also reducing its workforce in New Jersey, with 282 positions slated for elimination between December 2025 and March 2026. This follows multiple prior rounds of layoffs in 2025, bringing the total number of New Jersey employees affected this year into the hundreds. The reductions impact personnel at BMS’s Lawrenceville facilities, which include a corporate headquarters and a 650,000-square-foot commercial and R&D complex.
The pharmaceutical giant cited its ongoing “strategic productivity initiative” as the rationale for the cuts, aimed at generating $2 billion in cost savings by the end of 2027. Company representatives stressed that the layoffs are part of a broader effort to align resources with the company’s evolving operating model and portfolio priorities, allowing BMS to focus on delivering transformational medicines globally while maintaining long-term strategic growth.
These layoffs are not isolated incidents. Other New Jersey-based pharmaceutical companies, including Novartis, have implemented workforce reductions as they navigate rising competition, higher interest rates, and the need to prioritize high-growth therapeutic areas. Analysts suggest that the trend reflects a combination of market pressures, shifting consumer demand, and the push to maintain operational efficiency in a highly competitive global industry.
Local impacts are significant. Plainsboro and Lawrenceville, both long-time hubs for pharmaceutical employment, will see communities directly affected as families and employees navigate career transitions. Both Novo Nordisk and BMS have indicated that employee support and transition services will be provided, but the ripple effects on the regional economy and service sectors are expected to be felt throughout the remainder of 2025 and into 2026.
The changes highlight a broader question for New Jersey’s healthcare and biotech industries: how to balance innovation, competitiveness, and workforce stability while maintaining the state’s reputation as a national leader in pharmaceutical research and development. As companies continue to recalibrate their strategies in the face of market pressures, state and local policymakers may need to explore additional resources and programs to support affected employees and ensure that New Jersey remains an attractive environment for high-tech healthcare enterprises.
For residents and professionals navigating the evolving healthcare landscape in New Jersey, ongoing updates and guidance on wellness, employment resources, and industry developments are available at Explore New Jersey Health & Wellness.
