Moderna to reduce global workforce by 10% in restructuring

Moderna (MRNA) announced an organizational restructuring that will reduce its global workforce by approximately 10%. “This action is part of the Company’s previously stated plan to decrease estimated GAAP operating expenses by $1.4 to $1.7 billion by 2027 and better align its cost structure and capabilities with current business conditions while also sustaining investment in its mRNA pipeline. Affected employees will receive severance, equity vesting and comprehensive transition support. Moderna anticipates a total headcount of under 5,000 employees by year-end,” the company stated. In a message from CEO Stephane Bancel that was emailed to all Moderna employees on July 31, the CEO stated in part: “This decision was not made lightly. It impacts teammates and friends who have dedicated themselves to our mission and who have helped build Moderna. I want to express, on behalf of the entire Executive Committee and on behalf of patients you have served, our deepest thanks for everything you have contributed. Earlier this year, we committed to reducing our annual operating expenses by approximately $1.5 billion by 2027. We’ve made significant progress by scaling down R&D as respiratory trials conclude, renegotiating supplier agreements, and reducing manufacturing costs. Every effort was made to avoid affecting jobs. But today, reshaping our operating structure and aligning our cost structure to the realities of our business are essential to remain focused and financially disciplined, while continuing to invest in our science on the path to 2027.”