Own Workforce
ESRS S1 - Own Workforce
Our people play a critical role in enabling our R&D activities, even as we underwent significant change during FY25. This section covers our own workforce, which on average consisted of 540 employees during FY25, including 441 in Europe, 98 in the U.S. and one in China. As of December 31, 2025, we had 416 employees in total, reflecting the impact of the organizational restructuring during the reporting year. An overview of FTEs in our financial statements can be consulted in note 9.
During FY25, we underwent significant organizational change. These shifts had important implications for our workforce. On January 8, 2025 it was announced that Galapagos would discontinue its small molecule discovery programs and reorganize its business to focus on long-term value creation in cell therapy in oncology.
Thereafter, on October 21, 2025, it was announced that Galapagos intended to wind down its cell therapy activities following a comprehensive strategic review. Following this, the Company commenced the consultations in the Netherlands and Belgium, in line with applicable legal frameworks. The consultation process followed the phases of information, consultation and negotiation. The works council consultation process regarding the intended wind‑down of our cell therapy activities was concluded. The wind‑down affects approximately 365 employees across Europe, the U.S. and China and results in the closure of the sites in Leiden (the Netherlands), Basel (Switzerland), Princeton and Pittsburgh (U.S.), and Shanghai (China).
Throughout the process, the Company engaged transparently with employee representative bodies in line with applicable legal requirements, ensuring that employee perspectives were considered and that appropriate support measures were identified. The dedication shown by colleagues during this period of uncertainty supported the orderly preparation and execution of the transition. Throughout the process, we maintained principles intended to support affected employees and ensure the transition was managed responsibly.
On January 5, 2026, Galapagos announced that the works council consultation process regarding the wind-down of cell therapy activities had been completed and that its Board of Directors decided to initiate the wind-down of the Company’s cell therapy activities. In the context of this transition, workforce-related topics remain materially relevant due to their connection to organizational continuity and capability.
The table below summarizes the nine material impacts, risks and opportunities (IROs) identified for our own workforce in our double materiality assessment.
Material Topic |
Description |
IRO Type |
Value Chain |
|---|---|---|---|
Working conditions
|
Uncertainty and reorganizations may impact employee motivation and engagement. |
Actual |
Own operations |
The risk of strategic reorganizations on our workforce relates to potential declines in employee motivation and engagement, loss of talent due to uncertainty, impacts on overall performance, and possible harm to our reputation as an employer. |
Risk |
Own operations |
|
Working conditions
|
By providing fair and competitive compensation, we contribute to supporting the financial wellbeing of employees and helping to ensure that work is appropriately valued and rewarded. |
Actual |
Own operations |
Working conditions
|
Providing our employees with good work/life balance supports wellbeing and mental health, and enables employees to perform at their best. |
Actual |
Own operations |
Equal treatment and opportunities for all
|
Unequal representation of women and minority groups in different roles and levels of seniority may affect employee wellbeing, workplace culture, and our ability to attract diverse talent. |
Actual |
Own operations |
Equal treatment and opportunities for all
|
We contribute to inclusive employment opportunities and support equal participation in the workforce. |
Actual |
Own operations |
Equal treatment and opportunities for all
|
By providing equal opportunities within our workforce, we contribute to a more inclusive and diverse working environment, which can support employee engagement and foster different perspectives and enhance organizational resilience. |
Actual |
Own operations |
Other work-related rights
|
Cybersecurity or security breaches, including personal data breaches risk the confidentiality of our employees’ information. |
Potential |
Own operations |
A privacy breach could have a financial or legal impact on us if the integrity, confidentiality or accessibility of employees’ personal data were compromised. |
Risk |
Own operations |
All material IROs identified under ESRS S1 fall within the short‑term time horizon (i.e., <3 years).
Overview of how material impacts, risks and opportunities interact with our strategy and business model (SBM-3)
While the organizational changes in FY25 resulted in secure employment being assessed as material in FY25, the other S1 topics continue to reflect routine and ongoing areas of importance such as working conditions, equal treatment and privacy.
Secure employment and working conditions
Secure employment is a material IRO due to the organizational changes during FY25. Job security was affected by the restructuring activities and the consultation process regarding the intended wind-down of our cell therapy activities. These developments were associated with impacts on engagement and wellbeing. Within this context, secure employment remains relevant to organizational continuity, the retention of institutional knowledge, and the ability to support remaining activities during a period of transition.
Supporting our talented employees by providing fair and equitable compensation across the organization remains a priority. Adequate wages and established compensation practices continued to play a role in supporting internal equity and maintaining engagement. Promoting work-life balance also remained relevant to employee well-being and the sustainability of working practices during this period.
Equal treatment and opportunities for all
During the year, we maintained our established practices to support fairness and equal pay for work of equal value, including the use of internal benchmarking activities and structured pay frameworks that uphold equity across roles. These practices supported consistency and transparency in compensation during FY25 and remained relevant as we navigated a period of transition.
Inclusive hiring practices also contributed to supporting a fair and inclusive working environment and helped maintain access to a broad range of skills and perspectives within the workforce. Diversity contributed positively to the working environment by fostering different viewpoints and supporting employee engagement.
Privacy
Privacy and data security are critical areas of risk, particularly in the short term, as we must manage challenges related to cybersecurity, potential data breaches, and regulatory compliance, such as GDPR. To mitigate these risks, we are investing in robust cybersecurity systems, conduct third-party assessments, and maintain rigorous compliance measures. These initiatives are designed to safeguard sensitive and personal data, protect employees’ information, and uphold stakeholder trust.
Impact, risk and opportunity management
Policies
We maintain policies and practices designed to support fair, safe and respectful working conditions for all employees. Throughout FY25, we maintained policies aligned with the UN Guiding Principles on Business and Human Rights, the International Labour Organization Declaration on Fundamental Principles and Rights at Work and the OECD Guidelines for Multinational Enterprises.
ESRS sub-topics |
Policy |
Description |
|---|---|---|
Working Conditions and Equal Treatment & Opportunities |
Code of Conduct |
This sets out the essential standards of business conduct that Galapagos and its employees are expected to apply at all times. Responsibility for the Code of Conduct and compliance oversight rests with the General Counsel, who is a member of the Executive Committee. The Board of Directors approves the Code of Conduct. |
Anti-Discrimination & Anti-Harassment Policy |
This prohibits discrimination and/or harassment as per the definitions of the UN Global Compact. The Chief Human Resources Officer and General Counsel are accountable for this policy. |
|
Speak-Up Policy |
This sets out the way in which any concern that employees have can be managed in a consistent and appropriate way. The General Counsel is accountable for this policy. |
|
Reward Policy |
This defines the framework for how salaries are structured and managed, including the use of established salary ranges informed by our bi-annual benchmarking exercise. |
|
Remuneration Policy |
This outlines the framework used to determine compensation across the organization, including benchmarking against relevant peer groups, linking variable pay to defined corporate and individual performance measures, and applying differentiation in pay only on the basis of performance and other established criteria. |
|
Corporate Framework on Hybrid Working |
This outlines the basic guidelines for hybrid working across the organization, including flexibility in work location and working hours in line with local legislation and team arrangements. The policy sets out principles for balancing individual needs with those of the team and wider business, maintaining availability during country‑specific core hours, and supporting healthy work–life boundaries. |
|
Privacy |
Data Protection Policy |
This describes how personal data must be processed within the Galapagos group of companies and is aligned with the requirements of GDPR. The General Counsel is accountable for this policy. |
Actions
During FY25, we maintained principles intended to support affected employees and implemented enhanced measures that went beyond minimum legal requirements. This included extended notice arrangements and transition support and recognizing the performance of employees leaving the business in line with established reward cycles.
Working Conditions and Equal Treatment & Opportunities
In recognizing local legislation, we have established Works Councils in countries where this is required to support employee representation in relation to their rights, including establishing collective bargaining where necessary. During the workforce reduction activities in FY25, all employees were offered six one-to-one coaching sessions with an external provider. Further, we continued to apply established compensation practices supported by internal benchmarking and structured pay frameworks, which promoted fairness and transparency across roles. Employees were provided access to family leave policies and mental health initiatives, which supported wellbeing during a period of organizational change.
During FY25, we maintained practices to support fairness and equal pay for work of equal value. Inclusive hiring practices supported access to a broad range of skills and perspectives within the workforce. Diversity, Equity, Inclusion and Belonging (DEIB) workstreams were in place at the beginning of the year and guided inclusive practices. These activities were impacted by the organizational restructuring and subsequently scaled back as organizational resources were reduced during the year; Underlying practices supporting equitable treatment, however, remained in place throughout FY25.
Employee Privacy
With regard to Data Privacy, we performed an in-depth assessment of the different personal data and information we collect and we refined our internal inventory of personal data and information to further enhance our Data Privacy strategy. We regularly monitor compliance with our data policies and continue to evolve our risk management policies to address the evolving risks.
Application of Phase-in Relief
For FY25, we are applying the phase-in relief as available for S1 – Own Workforce. In line with ESRS 2 BP‑2 (17), we provide only the required brief narrative summary of its workforce for this reporting period. Galapagos has not set or disclosed any S1‑related targets for this period, as these are not yet required under the phase‑in provisions.