Cancer-focused biotechnology company Tango Therapeutics has
implemented workforce reductions affecting approximately 30 employees, representing roughly 20% of its staff, as part of broader cost-cutting measures. The company’s CEO Barbara Weber confirmed the layoffs on Monday, explaining that the decision was driven by challenging market conditions and the need to extend available funding.
The staff reductions primarily impact preclinical research operations, as Tango aims to concentrate resources on its PRMT5-targeted drug development programs. This restructuring follows recent pipeline adjustments at the company, which had previously scaled back certain drug development initiatives in 2024.
Last year, Tango ceased development of its TNG348 compound after clinical trial participants showed concerning liver function test results. The drug had been intended for combination therapy with AstraZeneca’s Lynparza. Later in the year, the company also narrowed its PRMT5 inhibitor program, choosing to advance only two of its three candidates in this category.
Currently, Tango’s lead compound TNG462 is undergoing Phase 1/2 clinical evaluation for pancreatic and lung cancers, with early results suggesting favorable safety and tolerability compared to competing treatments. The company maintains a second PRMT5 program, TNG456, which is being studied in combination with Eli Lilly’s Verzenio for glioblastoma treatment.
The field of PRMT5 inhibition has attracted significant attention since the 2010s, with major pharmaceutical companies including Amgen, Bristol Myers Squibb, and Bayer pursuing similar therapeutic approaches. Tango has established strategic partnerships with industry leaders, including an ongoing collaboration with Gilead Sciences dating back to 2018. In recent developments, Gilead licensed one of Tango’s discovery programs for $12 million in 2024.
As of December 31, Tango reported approximately $258 million in cash and equivalent assets, projecting financial sustainability into 2026. The company, which entered public markets through a SPAC merger in 2021 raising $353 million, has experienced volatile stock performance. Current share prices hover around $1.
The workforce reduction at Tango reflects broader challenges facing the biotech sector in 2025. Several other prominent companies, including IGM Biosciences, Intellia Therapeutics, and Cargo
Therapeutics, have also announced restructuring efforts and staff cuts. The industry’s difficulties have been compounded by diminishing investment interest and growing concerns over Trump administration policies affecting tariffs and federal health funding.
Tango’s strategic refocus on its PRMT5 programs comes as the company attempts to navigate through difficult market conditions while maintaining progress on its most promising therapeutic candidates. The company continues to leverage its partnerships with major
pharmaceutical firms, including its established collaboration with Gilead and more recent work with Eli Lilly, as it pursues development of targeted cancer treatments.
The reduction in workforce, while significant, represents a calculated move to preserve resources for key clinical programs while adapting to current market realities. With 155 employees reported at the end of 2024, the company’s decision to eliminate approximately 30 positions demonstrates the challenging balance between maintaining operational capabilities and ensuring financial sustainability in today’s biotech environment.
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