In April 2020, Sage Therapeutics, a Cambridge, Massachusetts-based biotech company, announced a significant restructuring, laying off approximately 340 employees, which represented about 53% of its then roughly 650-person workforce. This drastic cost-cutting measure followed a major setback in late-stage clinical trials for its experimental depression drug, zuranolone, which forced the company to redraw its development plans. The layoffs primarily affected commercial and administrative roles, many tied to its approved postpartum depression treatment, Zulresso, whose hospital-based administration faced additional challenges due to the emerging COVID-19 pandemic. The move marked a sharp retrenchment for a company that had previously been valued near $10 billion, as it sought to conserve resources and refocus on its clinical pipeline.
