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

Moderna on Thursday said it plans to slash roughly 10% of its global workforce by the end of the year, as Covid shot sales continue to dwindle and the company grapples with uncertainty in the vaccine market. 

In a memo to employees, Moderna CEO Stephane Bancel said the company expects to have fewer than 5,000 workers by the end of the year. Moderna had approximately 5,800 full-time employees in 18 countries as of Dec. 31, 2024, according to its 2024 annual report. 

Shares of Moderna have dropped more than 20% this year. In May, the company reported first-quarter vaccine sales that missed Wall Street’s estimates. Moderna is also navigating policy hurdles under Health and Human Services Secretary Robert F. Kennedy Jr., who has taken steps to change vaccine guidelines and potentially threaten access to shots in the U.S.

Also in May, Moderna said it will reduce annual operating expenses by about $1.5 billion by 2027. That target adds to cuts that the company previously announced.

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

In the memo, Bancel said Moderna has made significant progress towards cuts by scaling down research and development, especially as 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 remain focused and financially disciplined, while continuing to invest in our science on the path to 2027.”

He said the “future of Moderna is bright,” noting that it now has three approved products and the potential for up to eight more in the next 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 lightly.”

“It impacts teammates and friends who have dedicated themselves to our mission and who have helped build Moderna,” he said. “I want to express, on behalf of the entire Executive Committee and on behalf of patients you have served, our deepest thanks for everything you have contributed.”