Moderna announces layoffs affecting 10% of its workforce

On July 30, 2025, Massachusetts-based Moderna, a prominent player in the biotechnology sector, revealed plans to lay off approximately 10% of its workforce as part of its restructuring efforts. This announcement was made by CEO Stéphane Bancel in a letter to employees, emphasizing a shift in the company’s operational strategy. The layoffs will reduce Moderna's global workforce to below 5,000 employees from around 5,800, as stated in their annual report at the end of 2024. The decision to downsize did not come easy for the management, as Bancel expressed appreciation for the dedication and contributions of the employees affected. He highlighted that this move was essential to align the company's operational costs with its current business realities, which have changed since the height of the COVID-19 pandemic. Moderna's commitment to cutting annual operating expenses by $1.5 billion by 2027 was reiterated, indicating a proactive approach to maintaining financial stability moving forward. In earlier communications, the company had already begun scaling back its research and development activities, renegotiating contracts with suppliers, and finding ways to reduce manufacturing costs. Bancel acknowledged the challenges faced while striving to safeguard jobs but ultimately concluded that implementing these layoffs was crucial for the company’s long-term goals. Since playing a pivotal role by developing one of the highly effective vaccines during the COVID-19 crisis, Moderna has seen significant shifts in its business operations as the pandemic recedes. The company formerly enjoyed immense government contracts for vaccine distribution. As markets adjust to a post-pandemic reality, Moderna's efforts to reshape its operational structure reflect a broader trend within the pharmaceutical industry of recalibrating strategies to remain competitive and efficient amidst changing public health needs.