Moderna, Inc. (MRNA) saw its stock price plummet by 5.01% in intraday trading on Thursday following the announcement of a significant workforce reduction. The biotechnology company, known for its COVID-19 vaccine, revealed plans to slash approximately 10% of its global workforce by the end of the year as part of a broader cost-cutting strategy.

In a memo to employees, Moderna CEO Stephane Bancel stated, "By the end of the year, we expect to be fewer than 5,000 colleagues strong." This reduction comes as the company grapples with declining sales of its COVID-19 vaccines and aims to streamline its operations. Moderna had approximately 5,800 employees at the end of 2024, suggesting that more than 800 jobs will be eliminated.

The workforce reduction is part of Moderna's larger plan to cut operating costs by up to $1.7 billion by 2027. Bancel noted that the company has already made progress in scaling down R&D as respiratory trials conclude, renegotiating supplier agreements, and reducing manufacturing costs. Despite these measures, the CEO emphasized that job cuts were a "necessary step forward" to align the company's cost structure with current business realities. Moderna aims to remain focused and financially disciplined while continuing to invest in its scientific endeavors, with a target of achieving eight more product approvals in the next three years.