Massachusetts-based Moderna, one of the companies at the forefront of developing a vaccine during the COVID pandemic, announced Thursday that it will lay off about 10% of its workforce.

Moderna CEO Stéphane Bancel announced the layoffs in a letter to employees.

Moderna announces layoffs

Bancel said the layoffs will bring the number of Moderna employees below 5,000 globally. As of its annual report published at the end of 2024, Moderna had approximately 5,800 full-time employees in 18 countries.  

"This decision was not made lightly. It impacts teammates and friends who have dedicated themselves to our mission and who have helped build Moderna," Bancel said. "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."

The CEO said the company committed earlier in the year to reducing annual operating expenses by $1.5 billion by 2027.

Bancel said Moderna has already scaled down research and development, renogoatiated supplier agreements and reduced 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," Bancel told employees.

What is Moderna?

Moderna is a pharmaceutical and biotechnology company based in Cambridge, Massachusetts.  

During the COVID pandemic, Moderna was one of the companies that successfully developed a vaccine that was widely distributed.

Modern's vaccine received emergency use authorization, and the U.S. government purchased hundreds of millions of doses for distribution.

In May, Health and Human Services Secretary Robert F. Kennedy Jr. said that he would remove the Centers for Disease Control and Prevention's recommendation for children and healthy pregnant women to get vaccinated for COVID-19.

Also in May, Kennedy's HHS withdrew $766 million awarded to Moderna to develop a vaccine against potential pandemic flu viruses like the bird flu.