Two Massachusetts biotechnology companies have announced significant workforce reductions as they realign their business strategies toward more focused experimental treatments. Burlington-based Fractyl Health plans to cut approximately 45 percent of its staff, while Watertown-based EyePoint Therapeutics intends to reduce its workforce by 105 employees.
Fractyl Health, which reported having about 100 full-time employees as of March 2026, aims to discontinue development of its Rejuva gene therapy for type 2 diabetes. Instead, the company will concentrate on Revita, an investigational procedure designed to help maintain weight loss after patients stop using GLP-1 medications. Fractyl expects to seek Food and Drug Administration approval for Revita near the end of 2026. The company anticipates completing most layoffs by November. In January 2025, it also cut 22 jobs. Harith Rajagopalan, Fractyl’s cofounder and chief executive, described the restructuring as a necessary step to improve operational efficiency despite the challenges posed by workforce reductions.
EyePoint’s decision follows disappointing results from a key study of Duravyu, an experimental treatment targeting wet age-related macular degeneration, a condition that can lead to vision loss. The treatment failed to meet primary endpoints, prompting EyePoint to halt late-stage trials for that indication. The company will instead focus on testing Duravyu for diabetic macular edema, which involves fluid leakage and swelling in the eye due to damaged blood vessels from diabetes. Duravyu is designed to deliver medication over at least six months, potentially reducing the frequency of injections for patients, but it has not yet received FDA approval.
EyePoint anticipates results from two major clinical trials for diabetic macular edema in late 2027. The company’s restructuring is expected to generate annual savings of roughly $30 million. According to a state notice, the layoffs will occur between the end of this year and early 2027. EyePoint’s headquarters are in Watertown, with a manufacturing facility located in Northbridge.
The workforce reductions come amid an uneven recovery in Massachusetts’ biotech sector. While investment rebounded in the first half of 2026, industry employment declined by about 3,600 jobs in 2025—the first annual drop recorded in over 20 years, according to the Massachusetts Biotechnology Council. Fractyl Health did not provide additional comment beyond its initial statement.