Moderna is set to slash ten percent of its workforce this year, the pharmaceutical giant revealed on Thursday morning.
The company – the maker of one of the most prevalent Covid-19 vaccines – now faces uncertainty as that market dwindles.
The move, announced in an internal memo by CEO Stephane Bancel, is part of the company’s previous plan to cut operating expenses by about $1.5 billion by 2027.
‘We’ve made significant progress by scaling down R&D as respiratory trials conclude, renegotiating supplier agreements, and reducing manufacturing costs,’ Bancel said in the memo.
Moderna has been banking on revenue from newer mRNA shots, including its experimental COVID-flu combination vaccine, to make up for falling sales of its COVID-19 shot and less-than-expected uptake of its respiratory syncytial virus vaccine.
However, investors have been concerned about the prospects of new shots and the changes in vaccine policy under U.S. Health Secretary and vaccine skeptic Robert F. Kennedy Jr.
Moderna said in May that it did not expect regulatory approval for its combination shot until 2026, since the U.S. Food and Drug Administration asked for late-stage data showing the vaccine’s efficacy against the flu.
The company had previously hoped to launch the vaccine for the autumn respiratory disease season in 2025 or 2026.
Moderna made one of the most prevalent Covid-19 vaccines
News of the job cuts were announced by CEO Stephane Bancel
Its shares, down around 23 percent so far this year, have been battered by mounting challenges and declining COVID revenue.
Moderna’s shares have lost more than 90 percent of their value from its pandemic-era highs.
