US biotechnology company Moderna, which developed one of the first Covid-19 vaccines, announced on Thursday that it will reduce its global workforce by approximately 10% due to declining sales of its vaccine.
The company stated that this restructuring is part of a plan unveiled in February to cut operational expenses by $1.4 to $1.7 billion (€1.23 to €1.49 billion) by 2027, aiming to better align its cost structure and capabilities with current market conditions.
CEO Stéphane Bancel informed staff of the changes, revealing that the company plans to have fewer than 5,000 employees by year-end. Bancel emphasised that every effort was made to prevent job loss, but restructuring and cost realignment are crucial to maintaining focus and financial discipline while continuing to invest in scientific research through to 2027.
In 2020, Moderna became one of the first companies to release a Covid-19 vaccine using messenger RNA technology, alongside Pfizer-BioNTech. This breakthrough allowed the Cambridge, Massachusetts-based company to generate billions in revenue, reaching $18.4 billion (€16.2 billion) in 2021, compared to $800 million (€701.04 million) the previous year.
Following this success, Moderna launched several vaccine development programmes, notably in oncology, and significantly expanded its workforce from 1,300 employees in 2020 to over 5,600 in 2023.
Last year, coinciding with pandemic stabilisation, declining sales of the Covid-19 vaccine led to a drop in revenue, down to $3.2 billion (€2.8 billion).
