Moderna to Cut 10 Percent of Staff as COVID Vaccine Sales Plunge Stock Drops 4 Percent

Moderna has announced plans to lay off 10% of its global workforce, reducing headcount to under 5,000 by year-end, as the company faces sharply declining COVID-19 vaccine revenues. The Cambridge-based biotech is accelerating its cost-cutting drive, aiming to reduce operating expenses by $1.5 billion by 2027.

CEO Stephane Bancel revealed the move in an internal memo, citing scaled-down R&D, renegotiated supplier deals, and lowered manufacturing costs as key steps already taken. Moderna expects 2027 operating costs to fall between $4.7 and $5 billion.

The company is betting on new mRNA products—including an experimental COVID-flu combination shot—to offset weak demand for its COVID-19 and RSV vaccines. However, investor worries and shifting US vaccine policies have pushed Moderna’s share price down over 20% this year, with the stock losing more than 90% since the pandemic peak.

Regulatory delays have also impacted plans, with the FDA requesting additional late-stage data before approving the combination vaccine, pushing potential launch to 2026. Despite setbacks, Moderna remains focused on securing eight new product approvals in the next three years.