Novavax to reduce current total global workforce by about 12%

Novavax stated: “In 2023, Novavax initiated a transformation of the company, which included the goal of significantly reducing Research & Development and Selling, General and Administrative expenses. As part of this company transformation, during our Q3 2023 earnings call, the Company announced its intention to bring R&D and SG&A expenses below $750M in 2024. These efforts look to strengthen the financial profile of the company and focus on delivering our differentiated COVID-19 vaccine in priority markets and accelerating the advancement of our COVID-19-Influenza Combination vaccine. As a leadership team, we have continued to assess the essential capabilities needed for success. This includes continuing to scale the company structure and spend. Today, we have made the difficult decision to reduce our current total global workforce, including both full-time employees and contractors, by approximately 12%. Upon completion, the resulting company workforce is expected to be approximately 30% lower as compared to the end of the first quarter of 2023… This week’s changes further scale the company structure and spend to enable readiness for the COVID-19 season and launch of our COVID-19-Influenza Combination vaccine Phase 3 trial. This further prioritization of core capabilities and optimization of our commercial footprint will enable our future success.” John Jacobs, President and Chief Executive Officer, Novavax, added: “With our mission to protect global public health at the forefront of all that we do, the new Novavax is being designed to be a leaner and more agile organization,” said John C. Jacobs, President and Chief Executive Officer, Novavax. “We are redefining how we do business and are purposefully focusing only on the critical activities needed to achieve our objectives and strengthen the financial performance of the company. We continue to spend significant time grounding our understanding of the market opportunity based on learnings from this season, and we will plan to share details on this and our efforts to align the company with the evolving business environment on our upcoming Q4 and FY 2023 earnings call. Our immediate focus is on executing these changes with empathy and support for the individuals who are transitioning out of Novavax, with gratitude for their efforts.”