Cambridge – Biotechnology firm Moderna announced Thursday that it will cut approximately 10% of its global workforce by the end of this year, citing slowing demand for Covid-19 vaccines and a need to streamline operations. The decision comes as the company continues to face uncertainty in the post-pandemic vaccine market.
In a company-wide memo, CEO Stephane Bancel informed employees that Moderna expects to employ fewer than 5,000 people globally by year-end. According to the company’s latest filings, Moderna had around 5,800 full-time staff across 18 countries as of December 31, 2024.
The company’s share price has already dropped more than 20% since the beginning of the year, reflecting investor concerns over the shrinking demand for Covid-related products. In May, Moderna’s first-quarter vaccine sales fell short of Wall Street expectations, adding pressure on the company to reduce spending and recalibrate future growth plans.
The cuts are part of a broader cost-reduction strategy that Moderna laid out earlier this year. In May, the company said it aimed to reduce its annual operating expenses by $1.5 billion by 2027, in addition to earlier savings plans. Bancel said the company has already made progress toward that goal by scaling down research and development activity, renegotiating supplier contracts, and cutting manufacturing costs, particularly in areas where clinical trials for respiratory products are wrapping up.
“Every effort was made to avoid affecting jobs,” Bancel wrote in the memo. “But today, reshaping our operating structure and aligning our cost structure to the realities of our business are essential to remain focused and financially disciplined, while continuing to invest in our science on the path to 2027.”
Despite the cuts, Bancel expressed optimism about Moderna’s long-term outlook. He highlighted the company’s progress, including three approved products and a pipeline that could yield as many as eight more approvals within the next three years. In May, the U.S. Food and Drug Administration approved Moderna’s next-generation Covid-19 vaccine, its third authorized product and a key step toward diversifying its portfolio beyond the pandemic.
However, the announcement also comes amid new regulatory challenges. The company is navigating policy changes led by U.S. Health and Human Services Secretary Robert F. Kennedy Jr., who has introduced proposals that could alter existing vaccine access and distribution mechanisms in the United States.
Moderna plans to provide a further update on its financial and operational outlook when it releases quarterly results on Friday morning.
Bancel concluded the internal message with a note of gratitude toward affected employees.
“This decision was not made lightly,” he wrote. “It impacts teammates and friends who have dedicated themselves to our mission and who have helped build Moderna. I want to express, on behalf of the entire Executive Committee and on behalf of the patients you have served, our deepest thanks for everything you have contributed.”
The job cuts mark a significant turning point for Moderna, once one of the most prominent players in the fight against Covid-19. As the world continues to transition out of the pandemic phase, the company is now focused on repositioning itself as a broader mRNA-driven healthcare innovator.
