Gilead Sciences and its subsidiary Kite Pharma are making significant workforce reductions, including 72 employees at Gilead’s Seattle location, which will close by January 17. The layoffs also impact Kite’s operations, with the company planning to shut down its Philadelphia facility by mid-2025. These moves are part of the companies’ efforts to realign resources with long-term strategic objectives.
The Seattle site, which has been focused on research and clinical development, will no longer be operational, leading to job cuts. A spokesperson for Gilead confirmed the layoffs, while offering affected employees the opportunity to apply for other positions within the company. However, the spokesperson did not specify the exact number of employees impacted. The decision to shut down the Seattle location is in line with Gilead’s broader strategy to prioritize key areas and realign resources to support future goals, including the development and launch of new treatments, such as lenacapavir for HIV prevention.
Kite Pharma, based in Santa Monica, California, is also facing workforce reductions. A year ago, the company cut around 7% of its workforce but also created 90 new roles in areas better aligned with its strategic focus, resulting in a net reduction of about 5%. The recent decision to close the Philadelphia facility is part of Kite’s ongoing efforts to focus on its most promising projects in cell therapy for cancer treatment.
This restructuring comes as Gilead prepares for the potential launch of six new products by 2030, with lenacapavir for HIV prevention slated for release in 2025. The company has been focusing on streamlining operations and redirecting resources to areas with the greatest potential for growth.
Financially, Gilead reported a 7% increase in third-quarter product sales, reaching $7.5 billion, though its cell therapy segment saw only modest growth. Kite’s Yescarta sales declined slightly, while Tecartus sales showed a minimal increase. Despite the challenges, Gilead remains focused on its long-term pipeline and strategic initiatives, including its push for FDA approval of lenacapavir as a twice-yearly HIV prevention treatment.
In conclusion, while the layoffs represent a significant shift for Gilead and Kite, the companies are positioning themselves for future growth by prioritizing key therapeutic areas and streamlining operations to better align with their long-term goals.