Moderna Lays Off 10% of Staff as COVID Vaccine Sales Slide

Moderna is making some big cuts. The biotech giant behind one of the most well-known COVID-19 vaccines announced Thursday that it’s laying off around 10% of its global workforce as part of a broader effort to slash costs. The move comes as sales of its COVID shot continue to decline and the future of the vaccine market remains murky.

In a memo to staff, CEO Stéphane Bancel said the company expects to have fewer than 5,000 employees by the end of 2025 — a significant drop from the 5,800 full-timers it had at the end of last year. The layoffs are part of a long-term plan to trim operating expenses by $1.5 billion by 2027.

“Every effort was made to avoid affecting jobs,” Bancel wrote, “but reshaping our structure is essential.”

The company has already been cutting back in areas like R&D, supplier contracts, and manufacturing as it wraps up some of its respiratory vaccine trials.

Shares of Moderna are down more than 20% this year and have plummeted over 90% since their peak during the pandemic. Investors haven’t been too impressed with the company’s recent financials — vaccine sales missed expectations in Q1, and uncertainty around US vaccine policy under Health Secretary Robert F. Kennedy Jr. isn’t helping either.

Kennedy, a known vaccine skeptic, has floated possible changes to national guidelines that could restrict access to shots, adding another layer of unpredictability for Moderna.

Even so, Bancel tried to strike an optimistic note. He reminded employees that Moderna now has three FDA-approved products and could see as many as eight more within the next three years. Among those in the pipeline: a next-gen COVID shot and a COVID-flu combo vaccine, though the latter likely won’t hit the market until at least 2026 due to regulatory delays.

“This decision wasn’t made lightly,” Bancel said. “It affects teammates and friends who’ve helped build Moderna from the ground up. We’re deeply grateful for everything they’ve contributed.”

The company will share more details Friday when it reports its next round of earnings.

With input from CNBC and Reuters.