Moderna, to reduce 10% of the workforce in the middle of Covid vaccine sales

The Moderna Inc. headquarters in Cambridge, Massachusetts, on March 26, 2024.

Adam Glanzman | Bloomberg | Getty pictures

Modern On Thursday, it said around 10% of the global workforce until the end of the year, since Covid’s sales continue to disappear and the company deals with uncertainty on the vaccine market.

In a memo to the employees, Stephane Bancel, CEO of Moderna, the company expects to have fewer than 5,000 workers by the end of the year. According to his annual report in 2024, Moderna had around 5,800 full -time employees in 18 countries.

Moderna’s shares have dropped by more than 20% this year. In May, the company reported vaccine sales in the first quarter to miss the Wall Street estimates. Moderna also navigates the hurdles of politics as part of the health secretary of Health and Human Services, Robert F. Kennedy Jr.

Moderna also said in May that it would reduce the annual operating costs by around 1.5 billion US dollars by 2027. This goal increases the cuts that the company has previously announced.

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Moderna will offer another update of its business if it releases quarterly results on Friday morning.

In the memoPresent According to Bancel, Moderna has made considerable progress in the direction of cuts by scaling research and development, especially since it concludes attempts on respiratory products, negotiates the supplier agreements and lowers the production costs.

“All efforts were made to avoid the influence of jobs,” he said. “But today the redesign of our operating structure and the orientation of our cost structure to the realities of our business are important in order to remain focused and financially disciplined and at the same time continue to invest in our science on the way until 2027.”

He said the “Future of Moderna was bright” and found that it now had three approved products and the potential for up to eight more in the next three years. In May, the Food and Drug Administration Moderna’s third product, a next generation Covid shot.

But Bancel said: “This decision was not made lightly.”

“It affects teammates and friends who have devoted themselves to our mission and who helped to build Moderna,” he said. “In the name of the entire Executive Committee and in the name of the patients they have served, I would like to express thanks for everything they have contributed.”

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