Moderna to slash 10% of workforce as biotech cuts costs, Covid shot sales slow

Moderna connected Thursday said it plans to slash astir 10% of its planetary workforce by the extremity of the year, arsenic Covid changeable income continue to dwindle and the institution grapples with uncertainty successful the vaccine market. 

In a memo to employees, Moderna CEO Stephane Bancel said the institution expects to person less than 5,000 workers by the extremity of the year. Moderna had astir 5,800 full-time employees successful 18 countries arsenic of Dec. 31, 2024, according to its 2024 yearly report. 

Shares of Moderna person dropped much than 20% this year. In May, the institution reported first-quarter vaccine income that missed Wall Street's estimates. Moderna is besides navigating policy hurdles nether Health and Human Services Secretary Robert F. Kennedy Jr., who has taken steps to alteration vaccine guidelines and perchance endanger entree to shots successful the U.S.

Also successful May, Moderna said it volition trim yearly operating expenses by astir $1.5 cardinal by 2027. That people adds to cuts that the institution previously announced.

Moderna volition supply different update connected its concern erstwhile it posts quarterly results Friday morning.

In the memo, Bancel said Moderna has made important advancement toward cuts by scaling down probe and development, particularly arsenic it concludes trials connected respiratory products, renegotiates supplier agreements and reduces manufacturing costs. 

"Every effort was made to debar affecting jobs," helium said. "But today, reshaping our operating operation and aligning our outgo operation to the realities of our concern are indispensable to stay focused and financially disciplined, portion continuing to put successful our subject connected the way to 2027."

He said the "future of Moderna is bright," noting that it present has 3 approved products and the imaginable for up to 8 much successful the adjacent 3 years. In May, the Food and Drug Administration approved Moderna's third-ever product, a next-generation Covid shot.

But Bancel said "this determination was not made lightly."

"It impacts teammates and friends who person dedicated themselves to our ngo and who person helped physique Moderna," helium said. "I privation to express, connected behalf of the full Executive Committee and connected behalf of patients you person served, our deepest acknowledgment for everything you person contributed."