Transitioning out of a PhD program and into research in industry
TL;DR ... 1. It is not much of a disadvantage, if any, and yes, it is possible to find research work without a PhD.  


I've worked in four industrial R&amp;D computer science organizations after getting a Ph.D.  Three were considered "research labs" while the most recent one is closer to the development side (but still has a strong foot in the academic research community).

Only one of these companies hired virtually only PhD-level employees.  The others had a mix of Ph.D.s and M.S.-level people.  

So I would modify @dan1111's comment to say that some don't care about a Ph.D. and some do.  And many will hire an M.S. (with or without any time spent in a Ph.D. program), though some won't.  

We've certainly hired people who left a Ph.D. program with just an M.S. after changing their mind.  I don't see this as an obstacle for industry, at least in computer software.  

In other disciplines, who knows?