SaaS and Pharma Sectors Announce Layoffs
Several major companies have announced significant workforce reductions, reflecting broad market pressures. Enterprise software firm C3.ai is cutting 26% of its global staff, while pharmaceutical company Viatris plans to trim its global workforce by about 10%. The trend, also seen at companies like EBay, highlights growing vendor instability and slower enterprise buying cycles.
The restructuring at C3.ai follows the appointment of new CEO Stephen Ehikian in September 2025 and is a direct response to what he called "inadequate" third-quarter results. The company's revenue of $53.3 million fell far short of the $77.5 million analysts expected, leading to a 20% drop in its stock price during after-hours trading. Ehikian's plan aims to cut $135 million in annual operating expenses by flattening the sales organization and focusing on core, profitable products. While the company is a notable AI vendor, some analysts suggest the layoffs are a traditional "blunt-force adjustment" to a cost structure that outgrew its market traction, rather than a move driven by AI-powered efficiencies. Viatris's workforce reduction is part of a multi-year transformation that began after the 2020 merger of Mylan and Pfizer's Upjohn division. Under CEO Scott Smith, the company has been in "Phase 1," divesting non-core assets to pay down over $7 billion in debt. This next phase targets an additional $650 million in gross cost savings by the end of 2028. These cuts are not isolated incidents but part of a broader trend of strategic restructuring across tech and pharma. In 2025, nearly 245,000 tech jobs were eliminated as companies pivoted resources toward AI development. The pharmaceutical sector is similarly navigating patent expirations and shifting R&D priorities, leading to significant workforce realignments at major firms like Merck, GSK, and Pfizer. For enterprise buyers, this level of vendor instability creates significant risk, potentially leading to a decline in service levels, reduced product development, and even a complete inability for the vendor to deliver services. These disruptions can directly impact a hospital's operations and even patient care, making vendor financial health a critical factor in purchasing decisions. The current market is marked by slower, more selective enterprise buyers. B2B sales cycles have lengthened, with 58% of professionals reporting an increase over the past year. Deals in the healthcare and technology sectors now average between 121 and 125 days to close, as buying committees have grown larger and require more internal validation before making a commitment.
