Outplacement in pharma and biotech

Pharma and biotechnology are among Germany's most innovative industries and stand for research, innovation and medical progress. Research-based pharmaceutical companies invest more than 9.6 billion euros a year in drug research in Germany alone; around 20,000 of their employees work here in research and development.

At the same time, the conditions are changing: pharmaceutical companies are under increasing cost and regulatory pressure, while biotech companies must hold their ground in a more selective capital market. Research is becoming more data-intensive, artificial intelligence is changing development processes, and new technologies such as cell and gene therapies, RNA technologies and modern bioprocesses are expanding value creation.

So the industry is not simply continuing to grow as before. It is developing into a more technology-, data- and capital-driven life-sciences industry — and with it, the labour market is changing too.

Pharma is robust — but the location is under pressure

Employment in the German pharmaceutical industry has risen recently; for 2026 the vfa expected a moderate increase to around 130,100 employees, up from 129,740 the year before. At the same time, the association warned of growing pressure on investment and employment due to changing health-policy conditions. The federal government now explicitly regards pharma as a strategic industry of the future and launched a dialogue on a pharma and medtech strategy at the end of 2025.

The picture is therefore nuanced: pharma is not a classic shrinking industry. But companies increasingly have to reassess their structures, investments and locations internationally and economically. For employees this means: security does not come from belonging to a future-oriented industry alone.

Cost pressure and regulation change business decisions

Pharma is highly regulated — prices, reimbursement, approval and health policy directly affect the prospects of products and companies. In 2026 this became particularly visible with new cost-containment legislation; according to vfa calculations, the manufacturer discount alone leads to an additional burden of around 3.2 billion euros in 2027. This can affect investment decisions — for example regarding:

• production sites
• research investment
• product portfolios
• organisational structures and shared services
• international division of labour

As a result, restructuring can occur even within fundamentally growing companies.

Biotech faces a different challenge

German biotechnology is scientifically strong but not yet equally robust economically across all development stages. In 2025 the sector raised 1.8 billion euros in capital — only 5% less than the year before. Venture capital, however, fell far more sharply, from almost 900 to 601 million euros, and 71% of that risk capital went to just three large deals.

Capital is available — but it is allocated more selectively. Financing is particularly difficult for smaller companies and biotechs in the growth phase. For employees this means: the quality of the scientific idea alone does not decide a company's future — commercialisation, financing, industrial scaling and strategic management matter more and more.

What does this mean for employment?

In biotech and pharma the pattern “the industry grows or shrinks” does not apply. Within the sector, companies can hire and cut jobs at the same time — for example when development projects are discontinued, pipelines concentrated, sites reassessed, functions centralised or research activities relocated internationally. At the same time, new roles emerge in AI, bioinformatics, data analysis, regulatory affairs, clinical development, bioprocessing, market access and commercialisation. This makes the labour market more selective and specialised.

Digitalisation and AI are changing pharma and biotech

Artificial intelligence is fundamentally changing the life-sciences value chain — from drug discovery through clinical trials, pharmacovigilance and regulatory affairs to production, quality management, supply chain and commercial excellence. This does not mean scientific or medical expertise loses importance — on the contrary:

The combination of expertise + data + technology becomes more valuable. Precisely this connection can become the decisive career factor.

Your market value is greater than your job title

Pharma and biotech professionals risk defining themselves too strongly by their previous function or technology. A Director Clinical Development is not just “15 years of clinical development” — behind it lie trial strategy, regulation, international project management, cross-functional leadership, portfolio and stakeholder management. Possible target markets: pharma, biotech, medtech, CRO, digital health, healthcare consulting.

A Head of Manufacturing combines GMP, production optimisation, quality management, automation, investment and supply-chain management, site development, leadership and restructuring — also relevant for medtech, chemicals, food, industrial biotechnology, plant engineering and healthcare technology.

The decisive step: make visible not only the scientific or technical expertise, but the economic value behind it.

Which competencies are becoming more important?

• Science plus data — bioinformatics, data analysis and data-driven research.
• AI competence — integrating AI meaningfully into research, development or business processes.
• Regulatory affairs — complex international approval and regulatory requirements.
• Clinical development — steering clinical development programmes internationally.
• Commercialisation & scaling — turning scientific excellence into industrial value creation.
• Transformation & leadership — steering innovation, efficiency and change at the same time.

The boundaries between industries are increasingly blurring: pharma works with biotech, AI, data companies, medtech and digital health; biotech connects biology, chemistry, medicine, IT, production and venture capital. Those who can connect several of these worlds have a competency profile that is less easily replaceable.

Which industries are interesting for pharma and biotech professionals?

A move need not lead out of the industry — but adjacent markets can be interesting:

Experience from pharma & biotech	Conceivable target industries
R&D / research	biotech, medtech, pharma
Clinical development	CRO, pharma, biotech
Regulatory affairs	medtech, pharma, healthcare
Quality management	medtech, chemicals, food
Production / GMP	medtech, chemicals, industrial biotech
Supply chain	industry, healthcare, chemicals
Bioinformatics / data science	tech, digital health, healthcare
Market access	pharma, medtech, healthcare
Commercial excellence	healthcare, B2B technology
Transformation	pharma, biotech, medtech, consulting

Medtech, digital health and healthcare technology in particular are interesting bridges. For specialists: a highly qualified specialisation is an advantage — but it should not appear merely as “function + company + technology”. It is better to also make visible which problems you can solve. Not “GMP specialist”, but “expert in GMP-compliant, efficient and automated manufacturing processes in regulated environments”.

A different logic applies to executives

An executive is not hired solely for their expertise, but for portfolio steering, product and organisational development, international leadership, restructuring, M&A, commercialisation, innovation management, scaling and digital transformation. A “Head of R&D Pharma” can, depending on experience, also be positioned as an “executive for innovation and product development in technology-driven, regulated markets”.

For CEOs, managing directors and division heads, the decisive question is: can this leader translate scientific or technological innovation into sustainable business? A stronger positioning — where the career supports it — might read: “Internationally experienced life-sciences manager for growth, transformation and scaling of technology-driven companies.” The industry provides the credibility; the impact provides the market value.

What affected professionals should do after job cuts

1. Analyse your competence base. Which expertise goes beyond the current product, company or research area?
2. Make achievements visible. Which development programmes, approvals, products, processes or organisations were successfully advanced?
3. Identify transferable competencies. Which skills are also in demand at medtech, healthcare, CROs, consulting or technology companies?
4. Define target markets. Which companies need exactly this combination of expertise, industry knowledge and leadership?
5. Sharpen your positioning. What should a potential employer understand about the profile after 30 seconds?
6. Choose the right market access. For senior and executive profiles, networking, executive search, referrals and direct approaches are often more important than classic applications — the core of our KARENT PLACEMENT approach.

What professional outplacement consulting can achieve

For pharma and biotech professionals, professional identity is often closely tied to a scientific discipline, technology or product pipeline — which is exactly why a professional assessment is so valuable. Outplacement covers assessment, competency transfer, target-market analysis, repositioning, executive positioning and network and interview strategy — including how to explain a restructuring or a discontinued pipeline confidently.

Pharma and biotech: industries of the future in transition

Germany has strong research structures, established companies and a significant life-sciences landscape; employment has grown despite difficult conditions. At the same time, the competitive environment is changing: in pharma, regulation, cost pressure and international competition increase the pressure to adapt; in biotech, financing is becoming more selective.

Technologically, the industry keeps evolving — AI is changing research, data is changing development, new biotechnologies are changing products, automation is changing production. Career profiles are changing with them: people who can combine specialisation with technology, business understanding, leadership and change competence become especially valuable.

Job cuts end a specific position — not automatically the value of the scientific, technical or entrepreneurial experience behind it.

The right repositioning can turn a supposedly narrow specialisation into a broadly connectable life-sciences profile. The industry is changing. Your career need not become smaller because of it — it can be thought of as larger.