Moderna Inc. said it will reduce its global workforce by roughly 10% before year’s end, responding to sharply reduced demand for its Covid-19 vaccines and broader uncertainty in vaccine markets. CEO Stéphane Bancel confirmed in a memo that staff numbers will shrink from around 5,800 to fewer than 5,000 full-time employees by December. The move reflects efforts to align costs with the realities of declining vaccine revenue and a shifting health policy environment.
Moderna’s shares have fell over 20% so far this year, following weaker-than-expected first-quarter vaccine sales and general pressure across biotech stocks. The firm now projects a $1.5 billion reduction in annual operating expenses by 2027, building on earlier cost-cutting measures announced earlier this year. In the memo, Bancel noted that much of the savings will come through scaling back research and development programs, renegotiating supplier contracts, and streamlining manufacturing operations as trials on respiratory vaccines wind down.
Bancel acknowledged the impact on employees, many of whom have served the company for years. “Every effort was made to avoid affecting jobs,” he said. “Yet reshaping our operating structure and aligning it with business realities has become essential.” He stressed that despite the reductions, Moderna plans to continue investing in science, with three approved products now on the market and up to eight more expected within the next three years.
The company’s third approved product, a next-generation Covid-19 shot—gained U.S. regulatory clearance in May. Moderna is also working toward approval of an experimental combined Covid-flu vaccine, though late-stage data required by the FDA may delay its launch until 2026. Such delays have triggered concern among investors, given that the company had aimed to release the combination vaccine for the fall 2025 respiratory season.
Moderna’s financial outlook depends heavily on the success of its new vaccines and its ability to trim costs amid lower demand for Covid shots. The company has already projected its operating expenses will fall between $4.7 billion and $5 billion by 2027. However, policy shifts under U.S. Health and Human Services Secretary Robert F. Kennedy Jr., who has made changes to vaccine guidelines, have fueled regulatory uncertainty. Biotech firms across the industry are watching these developments closely, as they may affect future vaccine access in the U.S.
Despite the challenges, Bancel emphasised the company’s broader scientific outlook. He wrote that Moderna’s pipeline includes several promising candidates and that the focus now lies on preserving cash while pursuing new therapies targeting respiratory illnesses, cancer, and other areas where mRNA technology may play a role.
For now, Moderna’s immediate task is managing the transition to a more sustainable cost structure without sacrificing its scientific ambitions. Quarterly financial results, expected later this week, will reveal how the company is faring in both revenue and research progress.
