Takeda Pharmaceuticals is one of the world’s major pharmaceutical companies, founded in 1781. It began by selling Japanese and Chinese herbal medicines and, by 1925, had become a modern corporate organization.
Today, it has built a business around treatments for gastrointestinal and inflammatory diseases, rare diseases, plasma-derived therapies, oncology, neuroscience, and vaccines.
The Japan-based drugmaker is known for medicines including Entyvio, used for ulcerative colitis and Crohn’s disease; Vyvanse, an ADHD drug; and Trintellix, an antidepressant marketed by Takeda in the U.S.
Now, the company is trying to prepare for its next phase of growth, but thousands of workers are being pulled out as a cost of that transformation.
Takeda plans to cut around 4,500 roles in fiscal year 2026 on a gross basis as part of a new transformation program, according to the company’s recent earnings presentation.
The move comes as Takeda is trying to balance several pressures at once: older drugs facing competition, higher restructuring costs, expensive new drug launches, and recent legal setbacks in the U.S.
Takeda cuts thousands of roles
Takeda said in its earnings call that as part of its new transformation program, it will reduce 4,500 roles in 2026.
Under this new transformation program, the company will further focus on:
- Centralizing and streamlining corporate functions
- Reducing management layers
- Simplifying processes through advanced technologies
- Expanding Global Capability Centers
The company expects restructuring costs of about $1.1 billion in FY 2026, with lower amounts in 2027 and 2028.
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It also expects the program to generate more than $1.3 billion in annualized gross savings by FY 2028, including about $630 million in savings in 2026.
These dollar figures are approximate conversions from Takeda’s yen figures.
- Restructuring cost: JPY 170.0B in FY 2026
- Gross savings: JPY 200.0B in annualized savings by FY 2028
- JPY 100.0B savings expected in FY 2026
This is not the first time the company has laid off so many people. Over the last two years, Takeda has eliminated more than 4,000 roles as part of its workforce optimization and R&D prioritization efforts.
It also points to strategic location decisions and restructuring expenditures in the following years, which means this cost-cutting may not be a one-time move.
But a broader effort to simplify the company and free up money for products it believes will drive its next stage of growth.
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Takeda prepares for drug launches
The restructuring comes as Takeda is trying to move past pressure from older products and focus investors on its pipeline.
In its FY 2025 report, Takeda reported a decline in revenue due to pressure on its business, particularly in neuroscience revenue.
That pressure is why Takeda is now leaning heavily on newer drugs and upcoming launches, saying that the company has three major launches in the pipeline in the next 12 months:
- Oveporexton for narcolepsy type 1
- Rusfertide for polycythemia vera
- Zasocitinib for psoriasis
Oveporexton and Rusfertide are set to commercially launch in the U.S. in 2026, and Zasocitinib is expected in the first half of 2027, pending regulatory approval.
Legal cases add to Takeda’s pressure
The layoffs also come as Takeda faces fresh legal pressure in the U.S.
On May 18, a U.S. jury in Massachusetts returned a verdict against Takeda in an antitrust litigation tied to Amitiza, a constipation drug.
The case was brought by groups, including wholesalers and retailers such as CVS and Walgreens, who alleged that Takeda’s 2014 settlement with Par Pharmaceutical delayed the launch of a cheaper generic version of Amitiza.
The plaintiffs argued that the delay kept drug prices higher by limiting generic competition.
The jury awarded the plaintiff $884.9 million in single damages, an amount that may increase further, subject to further proceedings.
Under U.S. antitrust law, the damages awarded to the wholesalers class and individual retailers are automatically tripled once the judgment is entered, while damages for the end payor class are subject to further proceedings.
Takeda has pushed back against the verdict.
“We remain firm in our conviction that the plaintiff’s case lacks merit, and we will vigorously pursue post-trial motions and an appeal. We also believe that there were both evidentiary and legal errors made during the trial. While we are disappointed with this outcome, we thank the jury for its service,” Takeda’s official statement read.
Takeda said it is now assessing the provision it needs to make in its FY 2025 financial statements and will revise and re-file the report once that amount is determined.
This verdict comes days after Takeda agreed to pay $13.67 million to settle Justice Department allegations that it paid improper speaker fees and meals to health care providers to encourage prescriptions of Trintellix, an antidepressant.
The DOJ said the settlement resolves only the allegations, and there has been no determination of liability.
Together, these legal troubles add to the company’s pressure around Takeda as it cuts thousands of roles, absorbs restructuring costs, funds new drug launches, and works to move past legal and product challenges.
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