Moderna has announced that it plans to cut down 10% of its workforce by the end of the year. CEO Stephane Bancel said in a memo to employees that the company expects to have fewer than 5,000 workers by the end of the year, according to CNBC. Moderna currently has approximately 5,800 full-time employees in 18 countries as of Dec. 31, 2024.
“This decision was not made lightly. It impacts teammates and friends who have dedicated themselves to our mission and who have helped build Moderna,” Bancel said.
“I want to express, on behalf of the entire Executive Committee and on behalf of patients you have served, our deepest thanks for everything you have contributed,” Bancel said. These layoffs come as the sales of COVID-19 shots continue to dwindle.
READ: Nvidia becomes world’s first $4 trillion company (July 10, 2025)
Moderna shares have dropped more than 20% this year, and the company’s first-quarter vaccine sales have missed Wall Street’s estimates. Moderna is also facing hurdles from Health and Human Services Secretary Robert F. Kennedy Jr., who has taken steps to change vaccine guidelines and potentially restrict access to shots in the U.S.
Kennedy said in May that he would remove the Centers for Disease Control and Prevention’s (CDC) recommendation for children and healthy pregnant women to get vaccinated for COVID-19. He also withdrew $766 million awarded to Moderna to develop a vaccine against potential pandemic flu viruses like the bird flu.
Bancel stated in the memo that Moderna has made significant progress by scaling down research and development, especially as it concludes trials on respiratory products, renegotiates supplier agreements and reduces manufacturing costs. “Every effort was made to avoid affecting jobs,” he said.
“But today, reshaping our operating structure and aligning our cost structure to the realities of our business are essential to remain focused and financially disciplined, while continuing to invest in our science on the path to 2027.”
He also said that the future of Moderna is “bright,” and noted that it now has three approved products and the potential for up to eight more in the next three years. In May, the Food and Drug Administration (FDA) approved Moderna’s third-ever product, a next-generation COVID-19 shot. “We are sharpening our focus, becoming leaner, and staying ambitious in oncology, rare diseases and latent viruses,” he said.