Moderna to lay off 10% of workforce in major cost-cutting move

Biotech Moderna said on Thursday that it plans to reduce 10 % of the global workforce and expect to have less than 5,000 employees by the end of the year.

“This step is part of the company’s continuous effort to reduce the annual operating expenses by about $ 1.5 billion by 2027,” said Stephen Bancke, CEO of Moderna, said on Thursday in an internal message to employees.

Moderna depends on its new vaccinations from Mana, including the Covid-FU Test group, to compensate for the decrease in its vaccine sales in Covid-19 and the respiratory virus vaccine.

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Bansel said that the company, based in Cambridge, Massachusetts, has made efforts to avoid cuts in jobs, including reducing research and development, reducing manufacturing expenses and suppliers contracts.

“This decision was not taken lightly,” he said. “It affects the teammates and friends who devoted themselves to our mission and who helped build Moderna. I want to express, on behalf of the entire Executive Committee, and on behalf of the patients who served them, we thanked our deeper for everything I contributed.”

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Earlier this year, the company estimated that the annual operating costs for 2027 ranged between 4.7 billion dollars and 5 billion dollars, according to Reuters.

Conservations at the forefront of the conversation slogan in clarification from November 27, 2021. (Reuters/Dadu Rovik/Clarification/Photo File/Reuters)

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The company’s share decreased by more than 90 % of what it was during the Covid-19s, according to Reuters.

An employee shows the Moderna Covid-19 vaccine at Long Island Valley Stream Hospital in Northweell Health in New York, December 21, 2020. (Reuters photos / Reuters)

In the letter, BNCEL indicated that Moderna has three approved products and can have up to eight approvals for products in the next three years. He also said that he would provide employees with more details about the demobilization of workers at the company’s meeting on Friday.

“We are tightening our focus, becoming smaller, and we remain ambitious in oncology, rare diseases and potential viruses,” Bansel said.

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Moderna did not immediately respond to the Fox Business request for comment.