Declining COVID Vaccine Demand Leads Moderna to Cut 10% of Workforce

10% Reduction in Global Workforce by Year-End
Measures to Cut Annual Operating Costs

Moderna, the American pharmaceutical company known for its COVID-19 vaccine, plans to reduce its global workforce by 10%, aiming to bring the number of employees to fewer than 5,000 by the end of this year, Reuters reported on July 31 (local time).

Reuters Yonhap News

Stephan Bancel, CEO of Moderna, explained in an internal letter to employees on the same day that this measure is intended to reduce annual operating costs by approximately $1.5 billion (about 2.09 trillion won) by 2027.

CEO Bancel stated that the company has tried to avoid layoffs by implementing various cost-saving measures, including reducing research and development, cutting manufacturing costs, and renegotiating contracts with suppliers.

Moderna, headquartered in Cambridge, Massachusetts, rapidly expanded during the pandemic by developing an mRNA (messenger ribonucleic acid)-based COVID-19 vaccine. However, as sales of its COVID-19 and respiratory syncytial virus (RSV) vaccines declined, Reuters reported that the company has since relied on new mRNA vaccines, including a COVID-flu combination vaccine.

In his letter, CEO Bancel stated that the company currently has three approved products and expects to receive additional approval for up to eight more products within the next three years.

According to Reuters, Moderna had earlier this year projected its annual operating costs for 2027 to reach between $4.7 billion and $5 billion. Reuters also reported that Moderna's share price has plummeted by more than 90% from its peak during the COVID-19 pandemic.