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Biotech Giant Rallybio Exits CT: Dozens Face Layoffs as Facility Closes

  • Nishadil
  • October 02, 2025
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Biotech Giant Rallybio Exits CT: Dozens Face Layoffs as Facility Closes

Rallybio Corporation, a clinical-stage biotechnology company, has announced the closure of its New Haven, Connecticut facility, leading to the layoff of dozens of employees. This strategic decision, set to be finalized by the end of 2025, marks a significant shift for the company and a somber moment for the local biotech community.

The move comes as Rallybio streamlines its operations, focusing its resources on key development programs.

While the company did not specify the exact number of affected employees, sources indicate the layoffs will impact a substantial portion of its New Haven workforce. Employees were reportedly informed of the impending closure and job losses in recent communications.

Rallybio's decision reflects the challenging landscape of the biotechnology industry, where companies often make difficult choices to ensure long-term viability and to efficiently advance their pipeline of experimental treatments.

The company has stated that this consolidation is a necessary step to optimize its operational footprint and prioritize its most promising clinical assets.

For the affected employees, the news brings uncertainty and hardship. Rallybio has indicated it will provide support, including severance packages and outplacement services, to assist those transitioning to new roles.

The Connecticut Department of Labor has been notified of the mass layoff, a standard procedure for such significant workforce reductions.

The closure of the New Haven facility, which has been a hub for Rallybio's research and development efforts, will leave a void in the state's burgeoning biotech ecosystem.

Local officials and industry leaders are now assessing the impact on the region's workforce and exploring opportunities to absorb the talent pool created by these layoffs.

This development underscores the dynamic and often volatile nature of the biotech sector, where even promising companies must continuously adapt to market demands, funding realities, and the rigorous demands of drug development.

Rallybio's focus will now reportedly shift to its remaining operational centers as it continues its mission to develop therapies for rare diseases.

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