Evotec SE expects to reduce its workforce by up to 800 people and close down more business sites in its drive to regain momentum following a two-year slowdown in the market for drug discovery and preclinical development. The Germany-based company is one of Europe’s larger biotech service and drug development organisations with a global presence in manufacturing. It is a Nasdaq-listed company which had a market capitalisation of €969 million on 31 December 2025.
However starting in in 2024, a slowdown in drug discovery activity across the industry squeezed revenue, triggering the start of a reorganisation. At the same time, there was a change in the company’s top management. Evotec eliminated 400 jobs in the first phase of its reorganisation. The next series of job cuts will represent about 18% of the company’s global workforce. In parallel, the number of work sites will be reduced to 10 over the next two years.
Called Horizon, the most recent phase of this programme aims to modernise technology, deepen the company’s scientific leadership, and make it more competitive.
“From a financial perspective, Horizon represents a fundamental realignment of our operating model and cost structure,” said Paul Hitchin, chief financial officer, in a prepared statement. Among other things, it means reallocating resources toward higher-value, intellectual property-driven programmes, he added.
To implement the strategy, the company expects to spend €100 million between 2026 and 2028 in addition to non-cash outlays related to asset impairments. Evotec is calling 2026 a ‘transition year’ during which it will cut costs further and prepare for a recovery of the early drug discovery and development market. Capital expenditure is expected to be below 10% of revenue during this period.
Financial results for 2025 will be reported on 8 April. In advance, Evotec is guiding for group revenue of €788 million compared with €797 million in 2024. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITA) is expected to be €41 million compared with €22.6 million the previous year. For 2026, it expects revenue of between €700 and €780 million and an adjusted group EBITA of zero to €40 million.
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