Bicycle, Generation Bio Lead New Wave of Biotech Layoffs Amid Cash Crunch

Layoffs accelerated across the biotechnology sector in mid-August as companies moved to preserve cash and narrow research priorities after a prolonged funding slump. Bicycle Therapeutics said it will cut about a quarter of its workforce and trim operating expenses by roughly 30 %, extending its cash runway into 2028. The Cambridge- and U.K.-based drug developer disclosed the restructuring days after Roche’s Genentech unit opted to end a 2020 immuno-oncology collaboration that had carried up to $1.7 billion in potential milestones. Bicycle will concentrate resources on lead antibody-toxin conjugates zelenectide pevedotin and BT5528 while pausing other trials. Generation Bio announced a deeper retrenchment, laying off 90 % of employees and launching a strategic review after concluding it lacks the capital and time needed to advance its lipid-nanoparticle autoimmune platform into the clinic. The Massachusetts company ended the second quarter with $141 million in cash. Smaller, targeted cuts were reported elsewhere. Oric Pharmaceuticals will release about 20 % of staff, Absci cited “a small number” of reductions, and Fate Therapeutics plans to trim 12 % of headcount, all citing the need to lengthen cash runways beyond 2027-28. The latest moves add to a growing tally of workforce reductions across the life-science industry as rising development costs and tighter venture and public markets push even well-capitalised firms to slash spending and refocus on later-stage programs.