Biopharma companies experienced a 32% year-over-year increase in layoffs during the first half of 2025, with major workforce reductions reported in May and repeated adjustments by struggling firms like Jasper Therapeutics and Cargo Therapeutics. Economic headwinds, clinical setbacks, and industry consolidation contributed to this trend, impacting both startup and established companies. Meanwhile, investment activity has softened, with biopharma financings totaling $28.7 billion in H1 2025, a 59% drop from the previous year. These dynamics reflect ongoing operational and financial challenges in the sector amid evolving market conditions.