A series of layoffs has impacted the biotech industry in Northern California. Genentech, a pioneering biotech firm based in South San Francisco, announced its third round of cuts within 15 months. 143 roles will be eliminated by mid-July, following the company's previous reduction of over 500 positions in the past year. Genentech spokesperson Nadine Pinell described the layoffs not as cost-cutting measures, but as part of a continuous strategic workforce adjustment. "Periodically, adjustments and decisions are necessary regarding the right makeup of our workforce within our company’s various functions," Pinell stated to SFGATE.
As detailed by a recent SF Chronicle report, the layoffs at Genentech signify a broader economic pinch in the region. Beyond biotech, retail, health care, and agriculture are also shedding jobs across Northern California. Tre Posti, an event venue in Napa County, will close in August, resulting in 130 job losses. In addition, Michaels will shut down a Tracy distribution center, leading to the loss of 229 positions. Almond processor Blue Diamond Growers is phasing out their Sacramento facility, affecting roughly 600 workers, and Kaiser Permanente is cutting 40 positions across various Bay Area facilities.
Despite the layoffs, Roche, Genentech’s parent company, maintains that their overall workforce will remain stable throughout the year and mentions active hiring in several departments to support their development of new medical treatments. "Moreover, we are actively hiring in several areas to advance our most promising molecules and capabilities," the company commented, highlighting 2,000 open positions across the company, per the SF Chronicle.
The recent cuts are part of a wave of economic setbacks for the region. For instance, Google has offered voluntary buyouts to its U.S.-based workforce in select divisions as part of its cost-reduction strategy. "If you’re excited about your work, energized by the opportunity ahead, and performing well, I really (really!) hope you don’t take this!" Nick Fox of Google reportedly encouraged employees in a memo, as noted by the SF Chronicle. The tech giant laid off 12,000 workers in 2023, and the recent buyouts suggest ongoing shifts in their workforce strategy.
