News Summary
Vertex Pharmaceuticals has revealed plans to lay off 125 employees at its Providence site due to the discontinuation of its VX-264 program for Type 1 diabetes. This decision is part of a consolidation effort as the company seeks to streamline operations. While the company continues work on other diabetes treatments, the layoffs have raised concerns regarding its workforce and ongoing projects. Vertex plans to assist affected employees with severance packages and outplacement support as they navigate this transition.
Rhode Island – Vertex Pharmaceuticals has announced plans to lay off 125 employees at its Providence facility, effective August 5. The layoffs come as part of the company’s decision to consolidate its operations into a single location at 225 Carolina Avenue, streamlining its previously separate offices located four blocks apart in Providence and an additional site in Warwick.
The reduction in workforce follows the discontinuation of the VX-264 clinical program for Type 1 diabetes, resulting in a total of 140 employees losing their jobs. This program aimed to help patients with Type 1 diabetes produce their own insulin through a “cells + device” method but ultimately failed to demonstrate significant efficacy data needed to advance it to further clinical trials. Although generally safe, the VX-264 program did not achieve the necessary levels of insulin production markers, known as C-peptides, leading to its termination.
The announcement regarding the layoffs was formalized in a Worker Adjustment and Retraining Notification (WARN) submitted to the state on June 6, and it was received on June 8. Alongside this layoffs announcement, Vertex Pharmaceutical is writing off a $400 million investment related to the VX-264 initiative.
Despite this setback, Vertex continues to pursue other avenues in diabetes treatment. The company is advancing another Type 1 diabetes cell therapy program called zimislecel, which is currently in phase 3 development. Vertex’s broader strategy is currently facing challenges across various fronts, reflecting a 3% decline in earnings compared to analyst expectations, even as the company posted a year-on-year growth of 3%, generating $2.77 billion in revenue for Q1 2025.
The layoffs in Rhode Island do not impact Vertex’s operations in Massachusetts, which remain unaffected by the WARN notice. To assist employees impacted by the layoffs, Vertex Pharmaceuticals plans to provide severance packages, outplacement support, and career counseling services.
Vertex Pharmaceuticals has seen a significant workforce increase over the past year, rising from 5,400 employees in 2023 to 6,100 in 2024, with 5,100 of these employees located within the United States. Nevertheless, the recent discontinuation of the VX-264 program was preceded by disappointing data from its phase 1/2 trials announced in late March, signaling potential growing pains for the company as it navigates challenges in the gene therapy space that may impact ongoing projects and partnerships.
As Vertex pharmaceuticals repositions itself following these layoffs and program discontinuations, the company remains focused on its drug development pipeline, particularly in the diabetes treatment sector. The outcome of these efforts and the impacts on the company’s workforce in Rhode Island will not only affect the employees directly involved but also have potential ramifications for the company’s operations overall as it seeks to adapt to the evolving pharmaceutical landscape.
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Author: STAFF HERE PROVIDENCE WRITER
PROVIDENCE STAFF WRITER The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.
