Moderna announced plans to reduce its global workforce by about 10% by the end of the year, responding to declining Covid vaccine sales and ongoing uncertainty in the vaccine market. The company expects to have fewer than 5,000 employees by year-end, down from approximately 5,800 full-time workers across 18 countries as of December 31, 2024.
This move comes as Moderna faces challenges including missed vaccine sales expectations and shifting regulatory policies under the leadership of Health and Human Services Secretary Robert F. Kennedy Jr., who has proposed changes to vaccine guidelines that could impact shot accessibility in the U.S.
Moderna’s shares have fallen more than 20% so far this year. In May, the company reported first-quarter vaccine sales that fell short of Wall Street forecasts and announced plans to reduce operating expenses by about $1.5 billion annually by 2027, building on earlier cost-cutting efforts.
In a memo to employees, CEO Stephane Bancel emphasized that the company has already made significant progress in reducing costs by scaling back research and development, concluding trials on respiratory products, renegotiating supplier contracts, and lowering manufacturing expenses.
“Every effort was made to avoid affecting jobs,” Bancel wrote, “but reshaping our operating structure and aligning our costs with business realities are essential to maintain focus and financial discipline while continuing to invest in science toward 2027.”
Despite the workforce reduction, Bancel expressed optimism about Moderna’s future, highlighting the company’s current portfolio of three approved products and the potential for up to eight additional approvals in the next three years. In May, the Food and Drug Administration approved Moderna’s third Covid vaccine product, a next-generation shot designed to enhance protection.
The CEO acknowledged the difficulty of the decision and its impact on employees. “This decision was not made lightly,” he said. “It affects teammates and friends who have dedicated themselves to our mission and helped build Moderna.” He offered sincere gratitude on behalf of the executive team and patients for the contributions of affected staff.
Moderna is set to provide further updates on its business outlook when it reports its quarterly earnings, expected shortly.
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