On Thursday, Moderna shared news of its plan to reduce its global workforce. The restructured company will eliminate 450 positions or nearly 10% of their workforce by year’s end. The firm will have to navigate unprecedented uncertainty in the vaccine market. That includes the inevitable drop in sales of its Covid-19 shots. This politically motivated stride is really about reimagining its operating model and recalibrating its cost structure with the new business order.
In May, Moderna announced first quarter vaccine sales that were below Wall Street projections. The company is focused on improving financial discipline. Beyond that, it is doubling down on its operations to more effectively steer itself through the new waters of vaccine supply and demand. The reduction in workforce is part of a broader strategy to ensure that Moderna remains focused and sustainable in the long term.
While the new Covid vaccine market presents challenges, Moderna is still focused on investing in greatness in science. Looking into the future the company hopes to build on its R&D work with plans that stretch down the road to 2027 and beyond. In late June, the Food and Drug Administration approved Moderna’s third-ever product. Combined with this next-generation Covid-19 vaccine, Moderna’s wall around its market just got higher.
The approval arrives against a backdrop of collapsing sales for its Covid vaccines. The business understands the ripple effect this trend has on their employee base and productivity as a whole.
“Every effort was made to avoid affecting jobs,” – Stephane Bancel
While announcing this decision, Moderna’s leadership underscored that this was not an easy decision to make. The announced 10% workforce reduction will surely affect thousands of employees. We’re incredibly proud of these talented people for all that they’ve accomplished in furthering our mission and growing the company.
“This decision was not made lightly,” – Stephane Bancel
“It impacts teammates and friends who have dedicated themselves to our mission and who have helped build Moderna,” – Stephane Bancel