Moderna Inc., headquartered in Cambridge, Massachusetts, announced on Thursday plans to reduce its global workforce by approximately 10% by the end of the year amid declining sales of its COVID-19 vaccines. In a memo to employees, CEO Stéphane Bancel indicated that the company anticipates having fewer than 5,000 employees by year-end, down from around 5,800 full-time workers reported as of December 31, 2024. This decision comes as the company faces increasing challenges in the vaccine market, leading to a drop of over 20% in its stock value this year.
The company’s fiscal troubles became apparent in May when it reported first-quarter vaccine sales that fell short of Wall Street expectations. The landscape for vaccine distribution is further complicated by regulatory changes under Health and Human Services Secretary Robert F. Kennedy Jr., who is working to alter vaccine guidelines in a way that could impact access to vaccinations in the United States. In an effort to stabilize its finances, Moderna also announced plans to cut annual operating expenses by around $1.5 billion by 2027, building on previous cost-cutting measures.
Moderna is set to provide a further update on its business trajectory when it releases its quarterly results on Friday morning. In his memo, Bancel emphasized that the company has already made strides in reducing costs through various means, including scaling back research and development initiatives and concluding trials for respiratory products. Additionally, the company is renegotiating supplier agreements and reducing manufacturing expenses to align its operations with current market realities.
“Every effort was made to avoid impacting jobs,” Bancel noted, stressing the need to reshape the company’s structure for continued focus and financial discipline. He maintained an optimistic outlook for Moderna’s future, citing the approval of three products and the potential for up to eight more in the next three years. Notably, in May, the Food and Drug Administration approved Moderna’s third-ever product, a next-generation COVID-19 vaccine.
Bancel acknowledged the difficult nature of the decision to reduce the workforce, stating, “It impacts teammates and friends who have dedicated themselves to our mission and who have helped build Moderna.” He extended heartfelt thanks on behalf of the Executive Committee and the patients served by the company’s work.
As Moderna adapts to the evolving landscape of the vaccine market, the coming months will be crucial for the company as it continues to navigate economic challenges and health policy shifts. The company’s focus remains on investing in scientific advancements, which it views as essential for future growth and sustainability.
With these significant changes underway, the health and wellness sector will be watching closely to see how Moderna’s strategy unfolds in a post-pandemic world.
Original Source: https://www.cnbc.com/2025/07/31/moderna-to-slash-10percent-of-workforce-amid-covid-vaccine-sales.html
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Publish Date: 2025-07-31 16:55:00
