Biogen cuts research jobs, focuses on external opportunities
MASSACHUSETTS, UNITED STATES — Multinational biotechnology company Biogen recently announced another round of layoffs, this time targeting its research team as part of a strategic shift toward external collaborations and a more focused preclinical portfolio.
The move comes under the leadership of Jane Grogan, who took over Biogen’s research department in late 2023 following a prior restructuring that eliminated over 1,000 positions.
According to a company spokesperson, the changes aim to “reinvigorate the company’s drug discovery capabilities and support long-term sustainable growth.”
While the exact number of employees affected was not disclosed, the layoffs were first reported by Endpoints News, which obtained an internal memo from Grogan.
“The new footprint of the research organization will match the needs of a prioritized preclinical portfolio and a shift of resources to external opportunities,” the spokesperson explained. This decision follows a year-long assessment of Biogen’s research capabilities in response to rapid changes in the biotech innovation landscape.
Leadership changes signal strategic realignment
In addition to workforce reductions, Biogen has announced leadership changes within its research division.
Danielle Graham, formerly interim head of translational medicine, will now lead biomarkers and system biology. Nick Wilson joins Biogen as head of immunology research after serving as vice president of discovery for cancer immunology and cell therapy at Bristol Myers Squibb.
Grogan, who previously held leadership roles at ArsenalBio and Graphite Bio, had promised to bring a “scrappy startup” mentality to Biogen’s research arm when she joined. Her tenure now marks another pivotal phase in the company’s ongoing transformation efforts.
Outsourcing: A growing trend in biotech strategy
Biogen’s decision to reallocate resources toward external opportunities reflects a broader industry trend toward outsourcing innovation. Collaborating with contract research organizations (CROs), academic institutions, and other specialized service providers allows companies like Biogen to access cutting-edge technologies without shouldering the full operational burden of in-house development.
This approach can help firms remain competitive in fast-evolving fields such as neuroscience and immunology while managing costs more effectively. By tapping into external expertise, Biogen aims to bolster its pipeline and maintain its position in an increasingly dynamic market.
Legal challenges add complexity to restructuring
The layoffs come as Biogen faces legal disputes with longtime partner Sage Therapeutics. Sage recently filed a lawsuit against Biogen after receiving an unsolicited buyout offer, further complicating the company’s strategic realignment efforts.
As Biogen navigates these challenges, its ability to balance internal restructuring with external partnerships will be critical to sustaining growth in a competitive biotech landscape.
