Gilead Sciences is implementing a strategic restructuring, including workforce reductions at its Kite Pharma subsidiary and the closure of its Seattle research facility. This move follows a previous round of layoffs at Kite approximately one year ago and reflects Gilead’s ongoing efforts to optimize its cell therapy operations and align resources with long-term strategic priorities.
Gilead will lay off 72 employees in Seattle, effective January 17, 2025, according to a WARN notice filed with Washington state. The company will also close its Seattle office, which primarily supports research and clinical development activities. While some Seattle-based employees will transition to remote roles or other positions within Gilead, the restructuring will result in a net reduction of the company’s workforce in the region.
In addition to the Seattle restructuring, Gilead plans to close a Kite Pharma facility in Philadelphia by mid-2025. This facility was acquired through Kite’s buyout of next-generation CAR-T developer Tmunity Therapeutics in late 2022.
These restructuring efforts come on the heels of Gilead’s Q3 2024 earnings report, which revealed a 7% year-over-year revenue increase but lackluster performance in the cell therapy segment. Sales of Yescarta, Gilead’s lymphoma CAR-T therapy, dipped 1%, while Tecartus sales grew by a mere 2%. Gilead faces increasing competition in the CAR-T space from rival therapies like Bristol Myers Squibb’s Breyanzi and emerging bispecific antibody platforms. Despite these challenges, Kite leadership has affirmed its commitment to its current strategy, focusing on expanding market share and driving broader adoption of its CAR-T therapies.
A Gilead spokesperson stated that the restructuring aims to align resources with the company’s long-term strategic goals. The company is providing impacted employees with severance packages, job placement services, and opportunities to apply for other open positions within Gilead. This strategic realignment echoes similar workforce reductions announced at Kite in late 2023, which were part of a “refreshed business strategy” to optimize the cell therapy subsidiary’s operations. Gilead joins a growing list of biopharma companies in the Seattle area implementing workforce reductions in 2024, including AGC Biologics, Athira Pharma, and Astellas Pharma’s Universal Cells subsidiary. This trend reflects the dynamic and competitive nature of the biotech industry, as companies continuously adapt to evolving market conditions and prioritize long-term growth and sustainability.
