IntelScoops

Cambridge, Massachusetts – July 31, 2025

Biotechnology giant Moderna Inc. has announced that it will reduce its global workforce by approximately 10% as part of a sweeping cost-reduction plan aimed at stabilizing the company’s financial trajectory over the next two years. The move will affect over 800 employees and is expected to be completed before the end of 2025.

The restructuring comes amid mounting revenue pressures following a sharp decline in demand for COVID-19 vaccines, which had been Moderna’s primary revenue stream during the pandemic. In a statement released on Wednesday, the company said the workforce reduction is part of a broader strategy to reduce operating expenses by $1.5 billion by 2027.

Chief Executive Officer Stéphane Bancel said the decision was “difficult but necessary,” noting that the company remains committed to advancing its mRNA platform while ensuring long-term sustainability. “We are taking decisive steps to align our operating model with the post-pandemic landscape,” Bancel stated.

The layoffs will be accompanied by reductions in research and development spending, manufacturing consolidation, and renegotiated supplier contracts. Moderna emphasized that key late-stage vaccine programs—including those targeting influenza, RSV, and cancer—will continue without disruption.

While the company has projected up to eight new product approvals between 2024 and 2027, analysts have expressed concern about short-term earnings stability. Moderna reported back-to-back quarterly losses earlier this year and is expected to post another loss for the second quarter of 2025.

Despite challenges, Moderna reiterated its focus on innovation, particularly in respiratory diseases and personalized cancer vaccines. The company also reaffirmed its goal of returning to profitability by 2028.

This marks the second major organizational change for Moderna in less than a year, reflecting the biotech sector’s broader transition as the COVID-era market contracts and investors shift their attention to long-term pipeline performance.