A sign marks the headquarters of Moderna Inc in Cambridge, Massachusetts, US.
Credit: Reuters Photo
Moderna said on Thursday it would trim roughly 10% of its global workforce and have fewer than 5,000 employees by the end of the year as the biotech accelerates its cost-cutting efforts amid declining sales of COVID-19 vaccines.
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 RD as respiratory trials conclude, renegotiating supplier agreements, and reducing manufacturing costs," Bancel said in the memo.
Moderna had said earlier this year it expects operating costs to be between $4.7 billion and $5 billion for 2027.
Bancel also reiterated the Cambridge, Massachusetts-based company's target to have eight more approvals for its products in the next three years.
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.
But investors have been concerned about the prospects of new shots and the changes in vaccine policy under US Health Secretary and vaccine skeptic Robert F Kennedy Jr.
Moderna had said in May it did not expect regulatory approval for its combination shot until 2026, since the US 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.
Its shares have been battered by mounting challenges and declining COVID revenue. They are down about 23% so far this year and were trading 2% lower in premarket hours.
Moderna's shares have lost more than 90% of their value since the pandemic-era highs.