Moderna to slash 10% of workforce amid Covid vaccine sales

Moderna on Thursday said it plans to slash roughly 10% of its global workforce by the top of the 12 months, as Covid shot sales proceed to dwindle and the corporate grapples with uncertainty within the vaccine market. 

In a memo to employees, Moderna CEO Stephane Bancel said the corporate expects to have fewer than 5,000 staff by the top of the 12 months. Moderna had roughly 5,800 full-time employees in 18 countries as of Dec. 31, 2024, in line with its 2024 annual report. 

Shares of Moderna have dropped greater than 20% this 12 months. In May, the corporate reported first-quarter vaccine sales that missed Wall Street’s estimates. Moderna can also be navigating policy hurdles under Health and Human Services Secretary Robert F. Kennedy Jr., who has taken steps to vary vaccine guidelines and potentially threaten access to shots within the U.S.

Also in May, Moderna said it would reduce annual operating expenses by about $1.5 billion by 2027. That concentrate on adds to cuts that the corporate previously announced.

Moderna will provide one other update on its business when it posts quarterly results Friday morning.

Within the memo, Bancel said Moderna has made significant progress toward cuts by cutting down research and development, especially because it concludes trials on respiratory products, renegotiates supplier agreements and reduces manufacturing costs. 

“Every effort was made to avoid affecting jobs,” he said. “But today, reshaping our operating structure and aligning our cost structure to the realities of our business are essential to stay focused and financially disciplined, while continuing to speculate in our science on the trail to 2027.”

He said the “way forward for Moderna is shiny,” noting that it now has three approved products and the potential for as much as eight more in the following three years. In May, the Food and Drug Administration approved Moderna’s third-ever product, a next-generation Covid shot.

But Bancel said “this decision was not made flippantly.”

“It impacts teammates and friends who’ve dedicated themselves to our mission and who’ve helped construct Moderna,” he said. “I would like to precise, on behalf of the whole Executive Committee and on behalf of patients you might have served, our deepest thanks for every part you might have contributed.”