The pandemic boom that once sent Moderna soaring is now fading fast, and the pharmaceutical company is feeling the heat.
In a major move announced Thursday, Moderna confirmed it will be cutting 10 percent of its workforce this year—signaling a shift as the Covid-19 vaccine market continues to shrink.
Internal Memo Lays Out the Cuts
CEO Stephane Bancel broke the news in an internal company memo, outlining how the layoffs are part of a bigger cost-cutting plan aimed at saving $1.5 billion by 2027.
Bancel said the company has already made strides in reducing expenses, including scaling back research and development now that key respiratory trials are wrapping up.
“We’ve renegotiated supplier deals and lowered manufacturing costs,” he said, trying to frame the layoffs as a necessary part of the company’s long-term strategy.
Covid Vaccine Demand Drops—and So Does Revenue
Moderna became a household name during the height of the pandemic, riding high on demand for its mRNA Covid-19 vaccine.
But those days are long gone.
As global vaccine demand shrinks, the company has been banking on new mRNA products, like a combined Covid-flu vaccine, to fill the financial gap.
Unfortunately, things aren’t going exactly to plan.
Experimental Vaccines Face Regulatory Roadblocks
One of Moderna’s big hopes was to launch a combo Covid-flu shot by the fall respiratory season in 2025.
But the U.S. Food and Drug Administration isn’t ready to give the green light just yet.
The agency wants to see full late-stage clinical trial data proving the shot works against flu before it even considers approval.
As of now, that means a launch isn’t likely before 2026.
Pressure Mounts from Investors—and Politics
Investors haven’t been thrilled. Moderna’s stock has taken a beating—down 23 percent this year alone and more than 90 percent below its peak during the pandemic.
To make matters more complicated, U.S. Health Secretary Robert F. Kennedy Jr., a known vaccine skeptic, has raised further doubts about future vaccine policies, adding another layer of uncertainty for companies like Moderna.
From Pandemic Highs to Tough Reality
Moderna was once a biotech darling, printing profits and headlines.
But now it’s grappling with a much tougher post-pandemic reality.
As demand for Covid vaccines dries up and new products face delays, the company is being forced to slim down—both in size and in strategy.