Moderna, the US-based biotechnology firm behind one of the first mRNA Covid-19 vaccines, announced on Thursday it will cut approximately 10% of its global workforce, as part of a broader cost-cutting initiative following a sharp decline in vaccine sales.
The company said the layoffs are part of a restructuring plan introduced in February 2025 aimed at reducing operational expenses by $1.4 to $1.7 billion (€1.23 to €1.49 billion) by 2027. The move is intended to bring Moderna’s cost structure and staffing in line with current market realities, as global demand for Covid-19 vaccines continues to decline.
CEO Stéphane Bancel informed employees of the upcoming changes, noting that Moderna expects to operate with fewer than 5,000 employees by the end of the year.
“We made every effort to avoid job losses,” Bancel stated, “but this restructuring is essential to ensure long-term sustainability while continuing to invest in innovative science and development through 2027.”
Moderna saw unprecedented financial success in the early years of the pandemic. In 2020, it was among the first to bring an mRNA-based Covid-19 vaccine to market, alongside Pfizer-BioNTech. This breakthrough led to a revenue explosion — from $800 million (€701 million) in 2020 to $18.4 billion (€16.2 billion) in 2021.
The surge in profits allowed the company to rapidly expand its workforce, growing from 1,300 employees in 2020 to over 5,600 by 2023. Moderna also launched several ambitious vaccine development programs, particularly in oncology and other infectious diseases.
However, the stabilisation of the pandemic and widespread global immunity have led to a sharp decline in vaccine demand. In 2024, Moderna’s revenues dropped to $3.2 billion (€2.8 billion) — a significant fall from its peak.
As a result, the company now faces excess capacity, with a cost base that no longer matches its market opportunities. The planned layoffs are seen as a necessary adjustment to protect Moderna’s financial health and future R&D priorities.
Despite the cutbacks, Bancel reaffirmed Moderna’s commitment to innovation, particularly in developing vaccines for cancer and other viral infections. The company plans to continue investing in its pipeline of next-generation mRNA therapeutics, even amid tighter budgets.
“We remain focused on delivering transformative medicines to patients worldwide,” said Bancel. “These changes, while difficult, will allow us to do so more efficiently and strategically.”
The layoffs at Moderna highlight a broader trend across the biotech and pharmaceutical sectors, as companies recalibrate following the extraordinary — and temporary — financial surge brought by the Covid-19 crisis.