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Moderna to cut 10% of workforce amid cost-cutting measures

The biotech firm will let go of approximately 500 employees as part of its plans to save $1.5 billion.

July 31, 2025 at 02:41 PM

Cambridge-based Moderna announces plan to cut workforce by 10%

The vaccine maker plans significant layoffs to align with financial goals.

Moderna announces workforce reduction plan amid cost-cutting efforts

Moderna, the Massachusetts-based vaccine maker, revealed plans to cut around 10% of its workforce, reducing its global employee count to below 5,000. CEO Stéphane Bancel informed employees through a memo, indicating that the company aims to lower operating expenses by about $1.5 billion by 2027. Despite previous attempts to cut costs through research and development adjustments and supplier negotiations, the company found these measures insufficient. Bancel acknowledged the emotional impact of the layoffs, assuring that efforts were made to avert job losses but emphasized the need for a restructuring to maintain financial discipline and ongoing investment in scientific advancements. A town hall meeting is scheduled soon to address these developments with the remaining workforce.

Key Takeaways

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Moderna plans to reduce its workforce by 10%.

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The layoffs will bring total employees under 5,000.

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Projected cost savings of $1.5 billion by 2027 are driving this decision.

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Previous cost-cutting measures were deemed inadequate.

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CEO emphasizes the emotional toll of job losses on the company culture.

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A town hall meeting will provide updates to remaining employees.

"Every effort was made to avoid affecting jobs."

Bancel stresses the company's attempts to minimize job losses during restructuring.

"We are so grateful for your contributions. You helped shape our culture."

Bancel acknowledges the impact of the departing employees on Moderna's culture.

The decision to reduce staff at Moderna highlights the ongoing challenges many companies face in a post-pandemic world. With revenue forecasts uncertain and operating costs under scrutiny, Moderna is taking proactive steps to stabilize its finances. This move raises questions about the future of the biotech industry, especially as companies must balance innovation with the demands of shareholders. As Moderna navigates this transition, its ability to retain talent and maintain morale within the remaining workforce will be critical for its long-term success.

Highlights

Moderna's cost-cutting efforts bring challenging changes for employees.
Restructuring is vital for Moderna's future amid financial pressures.
Layoffs reflect the harsh realities of post-pandemic business.
Investing in science remains a priority despite workforce cuts.

Workforce reduction raises financial and employee concerns

Moderna's layoffs come at a critical time as the company aims to significantly reduce costs. This decision could face backlash from employees and may affect public perception of the company.

The impact of these layoffs may extend beyond the immediate workforce and affect the company's future projects.

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moderna vaccines biotech workforce layoffs business healthcare economy

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