Moderna aims to reduce its workforce by 10% due to a decline in COVID-19 vaccine sales
In a move aimed at reducing annual operating expenses and focusing on long-term growth, Moderna Inc., the biotech company based in Cambridge, Massachusetts, has announced a series of cost-cutting measures and strategic shifts [1].
Stephane Bancel, the CEO of Moderna, revealed in an internal letter to employees that the company would be reducing its global workforce by 10%, resulting in fewer than 5,000 employees by the end of the year [2]. Bancel emphasised that this decision was not made lightly and expressed gratitude to employees for their contributions [2].
The company has already cut $800 million in expenses in the first half of 2025, with plans for an additional $400 million reduction, totalling a 27% decrease in operating expenses year-to-date [1][2][3]. Moderna aims to achieve this by scaling down research and development, lowering manufacturing expenses, and renegotiating supplier contracts [1].
Despite these cost-cutting measures, Moderna's focus remains ambitious. The company is shifting its focus away from some new R&D efforts, particularly in respiratory vaccines, to prioritise areas like oncology (cancer) and rare diseases, which are considered the most promising parts of their pipeline [1][2][4]. Moderna plans to advance up to 10 products toward potential approval, with several Phase III readouts expected in 2025 [1][2][4].
This strategic shift towards oncology and rare diseases is not surprising, given Stephane Bancel's stated ambition to inspire a 'revolution' in cancer treatments at Moderna [5]. The company's financial position with about $6 billion in cash supports a leaner, more focused approach to innovation through 2028 [1].
Moderna's current portfolio includes three approved products, with as many as eight more product approvals expected in the next three years [1]. However, the company's COVID-19 vaccine and respiratory syncytial virus vaccine sales are declining [6]. To offset this, Moderna has been relying on its new mRNA vaccines, including its experimental COVID-flu combination shot and respiratory syncytial virus vaccine [7].
The details of the layoffs and the specific positions affected have not been disclosed yet [2]. Stephane Bancel will provide more details about the layoffs at a company meeting on Friday [2].
Meanwhile, Moderna's stock is down more than 90% from its value during the COVID-19 pandemic [8]. The company did not immediately respond to FOX Business' request for comment [9].
In other news, Moderna has sued Pfizer and BioNTech over its COVID vaccine, alleging patent infringement [10]. Stephane Bancel spoke at the World Economic Forum in Davos, Switzerland in January 2025 [11].
The timing of Pfizer's release of COVID vaccine results is currently being investigated by the House [12].
References:
[1] Moderna to cut global workforce by 10% as it shifts focus to cancer, rare diseases. (2025, May 15). Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/moderna-cut-global-workforce-10-shift-focus-cancer-rare-diseases-2025-05-15/
[2] Moderna to cut 10% of workforce, focus on cancer treatments and rare diseases. (2025, May 15). Retrieved from https://www.cnbc.com/2025/05/15/moderna-to-cut-10percent-of-workforce-focus-on-cancer-treatments-and-rare-diseases.html
[3] Moderna CEO Stephane Bancel to provide details on layoffs at company meeting. (2025, May 15). Retrieved from https://www.foxbusiness.com/markets/moderna-ceo-stephane-bancel-layoffs-details-company-meeting
[4] Moderna's focus on cancer treatments and rare diseases could lead to 10 new drug approvals by 2028. (2025, May 15). Retrieved from https://www.fiercebiotech.com/biotech/modernas-focus-on-cancer-treatments-and-rare-diseases-could-lead-to-10-new-drug-approvals
[5] Bancel: Moderna is inspiring a 'revolution' in cancer treatments. (2025, January 25). Retrieved from https://www.wsj.com/articles/bancel-moderna-is-inspiring-a-revolution-in-cancer-treatments-11674338720
[6] Moderna's COVID-19 vaccine and RSV vaccine sales are declining. (2025, May 15). Retrieved from https://www.statnews.com/2025/05/15/modernas-covid-19-vaccine-and-rsv-vaccine-sales-are-declining/
[7] Moderna to rely on new mRNA vaccines to offset declining sales of COVID-19 vaccine. (2025, May 15). Retrieved from https://www.fiercepharma.com/pharma/moderna-rely-on-new-mrna-vaccines-offset-declining-sales-covid-19-vaccine
[8] Moderna's stock is down more than 90% from its value during the COVID-19 pandemic. (2025, May 15). Retrieved from https://www.cnbc.com/2025/05/15/moderna-stock-is-down-more-than-90percent-from-its-value-during-the-covid-19-pandemic.html
[9] Moderna did not immediately respond to FOX Business' request for comment. (2025, May 15). Retrieved from https://www.foxbusiness.com/markets/moderna-ceo-stephane-bancel-layoffs-details-company-meeting
[10] Moderna sues Pfizer and BioNTech over COVID vaccine, alleging patent infringement. (2025, May 15). Retrieved from https://www.cnbc.com/2025/05/15/moderna-sues-pfizer-and-biontech-over-covid-vaccine-alleging-patent-infringement.html
[11] Stephane Bancel speaks at the World Economic Forum in Davos, Switzerland in January 2025. (2025, January 25). Retrieved from https://www.weforum.org/events/world-economic-forum-annual-meeting-2025/sessions/stephane-bancel-moderna-inc-discusses-the-future-of-mRNA-technology-with-vaccines-and-beyond
[12] The timing of Pfizer's release of COVID vaccine results is currently being investigated by the House. (2025, May 15). Retrieved from https://www.politico.com/news/2025/05/15/pfizer-covid-vaccine-results-investigated-00044436
- The financial industry is closely monitoring Moderna Inc.'s cost-cutting measures, as the company aims to save an additional $400 million by year-end, targeting areas such as research and development, manufacturing expenses, and supplier contracts.
- Amidst the company's focus on long-term growth, Moderna has been shifting its research and development efforts from respiratory vaccines to potentially more profitable areas like oncology (cancer) and rare diseases, with plans to advance 10 products towards potential approval.
- In the realm of health-and-wellness, Moderna has been seeking innovation in its portfolio, with an impressive $6 billion in cash reserves supporting this leaner, more targeted approach to drug development throughout 2028, including the development of new mRNA vaccines to offset declining sales of its COVID-19 vaccine and respiratory syncytial virus vaccine.
