Layoffs stem from broader cost-cutting measures amid declining sales
COVID-19 vaccine maker Moderna is cutting approximately 10% of its global workforce as part of a broader cost-reduction effort through 2027.
Stéphane Bancel, CEO of Moderna, announced the cut on Thursday, saying it was not a decision they made lightly.
"I know this is a difficult moment for the company. We all feel a range of emotions whenever we have to say goodbye to colleagues," Bancel said in a statement.
Moderna has approximately 5,800 full-time employees in 18 countries as of December 31, 2024, according to its latest annual report. Bancel said they are expecting to have fewer than 5,000 by year-end.
"For those leaving Moderna: We are so grateful for your contributions," the CEO said. "You helped shape our culture and advance our mission. You will always be part of our story, and we are here to support you through this transition."
The cuts follow the company's announcement to reduce annual operating expenses by approximately $1.5 billion by 2027.
According to Bancel, the company has made significant progress by scaling down research and development, renegotiating supplier agreements, and cutting down manufacturing costs.
"Every effort was made to avoid affecting jobs," the CEO said.
"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."
Moderna, one of the pharmaceutical companies that developed COVID-19 vaccines during the pandemic, reported a sharp revenue decline in the first quarter.
Weighed down by lower net product sales — which totalled just $86 million — its Q1 revenue fell to $108 million, down from $167 million in the same period in 2024.
"The reduction in product sales reflects lower vaccination rates compared to the same period last year and the continued normalisation of COVID into a seasonal commercial market, with demand expected to be concentrated in the second half of the year," Moderna said in a May release.
But Bancel remains optimistic about Moderna's future.
"With three approved products and the potential for up to eight more approvals in the next three years, the future of Moderna is bright," he said. "We are sharpening our focus, becoming leaner, and staying ambitious in oncology, rare diseases and latent viruses."
