In a surprising move that highlights the ongoing volatility in the Bay Area’s biotech landscape, Alameda-based Exelixis has announced significant layoffs despite being valued at over $10 billion. The company is reducing its workforce by 11%, impacting 130 employees across its operations.

The layoffs primarily target the company’s Pennsylvania office and will affect workers in California, including four vice presidents and several upper-level professionals. According to company statements, the restructuring aims to consolidate operations in Alameda and create a “single, cohesive team” focused on long-term business strategies.

Exelixis, known for its groundbreaking cancer medication cabozantinib, has been a success story in oncology. The drug has gained FDA approvals for treating various cancer types, including kidney, liver, thyroid, and pancreatic cancers. The company continues to invest in future developments, with promising trials for its potential successor drug, zanzalintinib, which recently showed positive results in a colorectal cancer study.

Unlike many Bay Area biotech companies struggling with declining valuations, Exelixis remains financially robust. The layoffs appear to be a strategic reorganization rather than a desperate cost-cutting measure. The company expects to potentially reopen positions at its headquarters as new roles emerge.

The workforce reduction reflects broader trends in the biotech industry, where companies continually adapt to changing market dynamics and scientific opportunities. Workers in scientific and clinical trial management roles are among those most affected by these organizational shifts.

As the biotech sector continues to evolve, Exelixis’ decision underscores the complex balance between innovation, operational efficiency, and workforce management in a competitive industry landscape.