Massachusetts Life Sciences Companies Fall Short on Job Creation Targets, Facing Layoffs and Award Terminations

In a significant setback for the Massachusetts life sciences sector, nearly two dozen companies have failed to meet their hiring commitments tied to state tax incentives. This development comes amid a wave of layoffs affecting hundreds of jobs across the industry, signaling potential headwinds for the biotech hub.

Tax Incentive Program Misses Mark

The Massachusetts Life Sciences Center (MLSC) revealed that 21 companies awarded tax incentives to create and retain approximately 1,000 jobs collectively achieved only 13% of that target in 2024. These companies had agreed to create 1,053 life sciences jobs in Massachusetts from 2020 to 2024 and retain them through at least 2024, with many commitments extending to 2027 or 2028. However, the actual combined net increase in headcount as of December 31, 2024, was a mere 139 jobs.

Joe Sullivan, special advisor to the CEO at MLSC, noted that 34% of tax incentive awards have been terminated since the program's inception, reflecting broader industry trends and hiring challenges. Companies failing to meet their commitments face decertification from the program and are required to return the incentives received to the state's revenue department.

Notable Companies and Their Performances

Several high-profile companies were among those falling short of their hiring targets:

• Moderna, which was awarded over $6 million to create 345 jobs in Norwood, voluntarily terminated its incentive agreement, citing an inability to meet the requirements.
• Charles River Laboratories, awarded $2.345 million to add 148 jobs in Wilmington, reported no net increase in headcount.
• Sarepta Therapeutics, selected to receive $1.5 million for 100 new jobs in Cambridge, achieved a net increase of only 46 positions.

Layoffs Compound Industry Challenges

The hiring shortfalls coincide with widespread layoffs across the sector. Of the 21 companies on the MLSC's terminations list, 10 reported layoffs in 2024, including:

• Charles River Laboratories cut over 6% of its workforce—more than 1,300 people—since 2023.
• Moderna laid off an unspecified number of manufacturing and quality-assurance workers, citing lower demand for COVID-19 vaccines.
• Lyra Therapeutics announced a 75% reduction in its workforce following disappointing Phase III results.
• Tome Biosciences cut 131 employees—nearly its entire staff—amid unfavorable market conditions.

The trend continued into 2025, with companies like Charles River, Moderna, Tessera Therapeutics, and Vedanta Biosciences announcing additional rounds of layoffs.

Industry Outlook and State Response

Despite these setbacks, Massachusetts continues to invest in life sciences job creation. In 2025, the Healey-Driscoll Administration and MLSC announced $47.2 million in new tax incentives, aiming to create 2,325 life sciences jobs in the state.

As the industry grapples with these challenges, the effectiveness of tax incentive programs and the overall health of the Massachusetts life sciences sector remain subjects of ongoing scrutiny and debate.