Moderna has announced plans to cut around 10% of its global workforce by the end of 2025, responding to declining sales of its Covid-19 vaccine and changing market conditions. This reduction is part of the company’s efforts to improve operational efficiency amid the evolving healthcare industry.
In a memo to employees, CEO Stéphane Bancel stated the company expects to have fewer than 5,000 staff by year-end, down from about 5,800 as reported in its 2024 annual report. Moderna’s shares have fallen over 20% this year, with first-quarter vaccine revenues missing expectations.
The firm is also facing regulatory uncertainty under U.S. Health Secretary Robert F. Kennedy Jr., whose policy changes affect vaccine distribution in the United States. To reinforce financial discipline, Moderna aims to reduce operating costs by roughly $1.5 billion by 2027.
Bancel noted that cuts largely stem from winding down respiratory vaccine trials, renegotiating supplier deals, and improving manufacturing efficiency.
“Every effort was made to avoid affecting jobs,” he said. “But today, reshaping our operating structure… are essential to remain focused and financially disciplined.”
Despite job cuts, Bancel remains positive about Moderna’s future, highlighting three authorised products including the new, lower-dose Covid shot approved by the FDA in May 2025, and up to eight more possible approvals within three years.
Reflecting on the decision, Bancel said, “this decision was not made lightly,” adding gratitude for the contributions of those affected. Moderna seeks to balance cost-cutting with investment in innovation to stay competitive in the biotech sector.