Gossamer Bio is cutting 48% of its workforce after a Phase 3 clinical trial for pulmonary hypertension failed. For a 160-person biotech, losing 77 employees is a near-death event. The company is essentially shrinking to a skeleton crew while it figures out what comes next.
Biotech layoffs follow a different pattern than corporate restructuring. When a late-stage trial fails, the entire thesis for the company evaporates overnight. There is no pivot to AI, no efficiency optimization. The science did not work, and the company's primary asset lost most of its value. Gossamer's situation is shared by several biotechs in 2026, including Theravance Biopharma (50% cut after Phase 3 failure) and Disc Medicine (20% cut after FDA rebuff).