Moderna announces major layoffs as it scales back amid vaccine sales decline
TOI World Desk | TIMESOFINDIA.COM | Jul 31, 2025, 23:05 IST
( Image credit : TIL Creatives )
Moderna is set to reduce its global workforce by 10% as part of a cost-cutting initiative aimed at saving $1.5 billion by 2027, driven by declining COVID-19 vaccine sales. The company faces investor concerns due to delays in new mRNA-based vaccines, including a COVID-flu combination shot, and policy changes, leading to a significant drop in its stock price.
Moderna, the Massachusetts-based biotech giant known for its COVID-19 vaccine, revealed on Thursday that it will cut roughly 10 percent of its global workforce, reducing its headcount to fewer than 5,000 employees by the end of this year. This move comes as part of the company’s ongoing efforts to reduce operating expenses by $1.5 billion by 2027, driven largely by a steep drop in COVID-19 vaccine sales.
In an internal memo shared by CEO Stephane Bancel, Moderna highlighted progress made in trimming costs by scaling down research and development activities following the completion of respiratory disease trials, renegotiating supplier contracts, and lowering manufacturing expenses.
Earlier this year, Moderna had projected operating costs between $4.7 billion and $5 billion for 2027. The company has been pinning its hopes on revenue from new mRNA-based vaccines, including an experimental COVID-flu combination shot, to offset declining sales of its original COVID vaccine and underwhelming uptake of its respiratory syncytial virus vaccine.
However, investor confidence has been shaken by delays and uncertainties surrounding these new products, as well as changes in vaccine policies under U.S. Health Secretary Robert F. Kennedy Jr., who has expressed vaccine skepticism. This sentiment has contributed to a 20 percent drop in Moderna’s stock price so far this year. The stock has plummeted more than 90 percent from its pandemic-era highs and was trading about 4 percent lower on Thursday.
In May, Moderna announced that it does not expect regulatory approval for its combination COVID-flu vaccine until 2026, after the U.S. Food and Drug Administration requested additional late-stage data to verify its efficacy against the flu. Initially, the company had aimed to launch the vaccine during the respiratory disease season of 2025 or 2026. Despite these setbacks, Bancel reaffirmed Moderna’s goal to secure eight more product approvals within the next three years.
The workforce reduction marks a significant shift for Moderna as it navigates a post-pandemic landscape where demand for its flagship vaccine has diminished. The company is now focused on optimizing resources and diversifying its product portfolio to sustain long-term growth in a competitive pharmaceutical market.
With Moderna tightening its operations and setting a course for future innovations, the biotech firm is adapting to the challenges of an evolving healthcare environment, while investors watch closely for signs of recovery.
In an internal memo shared by CEO Stephane Bancel, Moderna highlighted progress made in trimming costs by scaling down research and development activities following the completion of respiratory disease trials, renegotiating supplier contracts, and lowering manufacturing expenses.
Earlier this year, Moderna had projected operating costs between $4.7 billion and $5 billion for 2027. The company has been pinning its hopes on revenue from new mRNA-based vaccines, including an experimental COVID-flu combination shot, to offset declining sales of its original COVID vaccine and underwhelming uptake of its respiratory syncytial virus vaccine.
However, investor confidence has been shaken by delays and uncertainties surrounding these new products, as well as changes in vaccine policies under U.S. Health Secretary Robert F. Kennedy Jr., who has expressed vaccine skepticism. This sentiment has contributed to a 20 percent drop in Moderna’s stock price so far this year. The stock has plummeted more than 90 percent from its pandemic-era highs and was trading about 4 percent lower on Thursday.
In May, Moderna announced that it does not expect regulatory approval for its combination COVID-flu vaccine until 2026, after the U.S. Food and Drug Administration requested additional late-stage data to verify its efficacy against the flu. Initially, the company had aimed to launch the vaccine during the respiratory disease season of 2025 or 2026. Despite these setbacks, Bancel reaffirmed Moderna’s goal to secure eight more product approvals within the next three years.
The workforce reduction marks a significant shift for Moderna as it navigates a post-pandemic landscape where demand for its flagship vaccine has diminished. The company is now focused on optimizing resources and diversifying its product portfolio to sustain long-term growth in a competitive pharmaceutical market.
With Moderna tightening its operations and setting a course for future innovations, the biotech firm is adapting to the challenges of an evolving healthcare environment, while investors watch closely for signs of recovery.