Vertex Pharmaceuticals is laying off 125 employees in Providence, Rhode Island, consolidating three facilities into one after discontinuing its experimental Type 1 diabetes cell-device therapy, VX-264135.
The workforce reduction and real estate downsizing follow the failure of VX-264 in a Phase I/II trial, where the therapy showed safety but did not produce sufficient insulin (C-peptide) levels to provide a clinical benefit34.
The layoffs primarily impact roles connected to the now-discontinued VX-264 program, with the changes expected to be permanent as indicated in WARN notices and company statements23.
Vertex absorbed a $400 million impairment charge as a result of discontinuing VX-264 and still has approximately 60 employees remaining in Providence after the cuts13.
Despite this setback, Vertex continues to develop another Type 1 diabetes therapy, zimislecel, which remains in late-stage clinical trials4.
Sources:
1. https://www.bizjournals.com/boston/news/2025/06/11/vertex-rhode-island-layoffs.html
2. https://firstwordpharma.com/story/5971408
3. https://www.biospace.com/business/after-axing-diabetes-asset-vertex-lays-off-140-staff
4. https://www.clinicaltrialsarena.com/news/vertex-halts-development-of-diabetes-cell-therapy-after-trial-failure/
5. https://www.golocalprov.com/business/BREAKING-Vertex-Pharmaceuticals-to-Lay-Off-125-in-Rhode-Island