Big Pharma Layoff Wave Extends Into Next Year: UNH, Merck, BMS, Novartis File New WARN Notices

• Layoff filings show UnitedHealth’s Optum units planning the largest set of early-2026 job reductions among major healthcare employers.
• Merck, Bristol Myers Squibb, and Novartis are pushing through additional cuts as part of restructuring and cost-saving programs.
• The reductions come as companies confront pressures ranging from patent cliffs and pipeline reshuffling to operational overhauls and profitability targets.

A new wave of layoffs continues to sweep the country, this time across the pharmaceutical and healthcare sectors, with Merck, Bristol Myers Squibb, Novartis, and multiple UnitedHealth Group Optum divisions filing advance notices of job cuts extending well into 2026.

The filings were submitted under the Worker Adjustment And Retraining Notification (WARN) Act in New Jersey, which requires employers to provide 60 days’ written notice before large-scale layoffs, giving workers time to prepare for unemployment and seek transition support.

Optum Layoffs Fit Into UnitedHealth Group’s Three-Year Reset

Several UnitedHealth Group units have filed WARN notices for early 2026, including Optum Care, which plans to cut 390 employees; Optum Services, with 49 reductions; and Optum Select Management, with 11 layoffs. The cuts come as UnitedHealth pushes through an overhaul aimed at restoring profitability by 2027, a plan that includes exiting unprofitable Medicare Advantage products, repricing coverage to reflect higher medical costs, and consolidating fragmented Optum systems. 

The insurer expects to lose about one million Medicare Advantage members this year as part of the reset. Meanwhile, Optum Insight, still recovering from the Change Healthcare cyberattack, is rebuilding its technology footprint with thousands of new AI engineers and signing fresh enterprise clients.

Merck Cuts 204 Jobs As $3B Cost Program Accelerates

Merck will eliminate 204 roles at its Rahway campus between Feb.20 and May 11, 2026, extending the company’s broader $3 billion cost-cutting initiative announced in July. That program includes reducing roughly 6,000 positions, or about 8% of Merck’s workforce, as the company prepares for Keytruda’s 2028 patent expiration, which threatens a major revenue gap, according to a report by Endpoints News.

Merck has attempted to reinforce its pipeline with acquisitions such as Verona Pharma and prior deals involving Prometheus Biosciences and China licensing agreements, even as it re-trains staff to fill roles in growth areas.

Bristol Myers Squibb Nears 1,000 Local Job Cuts

Bristol Myers Squibb is preparing to cut 110 jobs at its Lawrence Township campus between Feb. 12 and March 13, 2026, the latest in a steady stream of layoffs across the site. The location has already absorbed several rounds of cuts, including 516 positions announced in May, 290 earlier in the year, 68 in June, and 282 in September. That comes on top of more than 1,000 layoffs statewide last year.

The reductions are part of a sweeping restructuring effort Bristol Myers Squibb began in 2024, aimed at saving $1.5 billion by the end of 2025. The company has since doubled down, outlining plans to remove another $2 billion in costs by 2027 through organizational simplification, site consolidation, efficiency improvements, and the winding down of about a dozen R&D programs.

Novartis Plans 60 Layoffs 

Novartis plans to lay off 60 employees at its East Hanover headquarters by June 2026, adding to a series of workforce changes the company has made over the past few years. The cut follows a much larger 426-person reduction announced earlier this year, which stemmed from a reshuffling of the company’s cardiovascular commercial operations as Entresto approaches its loss of exclusivity.

The cuts are the latest in a series of changes at the site. In 2024, Novartis also cut 139 positions from sales teams working on Xolair, Tafinlar, and Mekinist. In 2022, it restructured the company by merging its oncology and pharmaceuticals units. The company has also been trying to reduce its operational costs and increase profitability, targeting a core operating margin of over 40% by 2027.

Merck Draws Bullish Mood On Stocktwits

On Stocktwits, Merck stood out with ‘bullish’ sentiment amid ‘high’ message volume, while Novartis, Bristol Myers Squibb, and UnitedHealth Group all saw ‘bearish’ sentiment, with the first two on ‘low’ volume and UnitedHealth on ‘normal’ volume.

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