Moderna is laying off 10% of its workers
The pharma company has seen its revenue decline as fewer people get the COVID-19 vaccine
David L. Ryan/The Boston Globe via Getty Images
Moderna announced Thursday that it's laying off 10% of its workforce globally.
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By the end of 2025, Moderna — known for its mRNA Covid-19 vaccine — expects to have less than 5,000 workers, CEO Stéphane Bancel said in a note to employees.
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“This decision was not made lightly,” Bancel said.
Moderna had previously said it was going to cut its yearly operating expenses by about $1.5 billion by 2027. Bancel said the company has made “significant progress” to this goal by cutting back on research and development, renegotiating supplier agreements, and minimizing manufacturing costs. “Every effort was made to avoid affecting jobs,” he said.
The company cut R&D costs by 19% in the first quarter.
In its first-quarter earnings announced in May, Moderna reported a net loss of $1 billion and said it expects a revenue range for the rest of the year of $1.5 to $2.5 billion with a cash balance of about $6 billion.
Its revenue was $108 million, compared to $167 million the same period last year. Moderna said the decline was primarily due to lower product sales, which it said “reflects lower vaccination rates” compared to last year and “the continued normalization of COVID into a seasonal commercial market.” The company said it expects demand for the vaccine to be concentrated into the second half of 2025.
Bancel said in his note to employees that even with the cuts, “the future of Moderna is bright,” adding that the company has three approved products and eight more that could get approval in the next three years.
Its stock dropped by 4.5% during the first 90 minutes of trading Thursday morning.
Moderna is set to announce its second-quarter earnings Friday.