Moderna plans to lay off 10% of workforce to cut costs
said on Thursday it would trim roughly 10% of its global workforce and have fewer than 5,000 employees by the end of the year, as the biotech accelerates its cost-cutting efforts amid declining sales of COVID-19 vaccines.
The move, announced in an internal memo by CEO
Stephane Bancel
, is part of the company's previous plan to cut operating expenses by about $1.5 billion by 2027.
Explore courses from Top Institutes in
Please select course:
Select a Course Category
Operations Management
Finance
MCA
Data Science
Healthcare
Public Policy
Digital Marketing
CXO
Project Management
PGDM
Technology
Artificial Intelligence
Product Management
healthcare
Degree
MBA
Data Science
others
Management
Leadership
Data Analytics
Cybersecurity
Others
Design Thinking
Skills you'll gain:
Quality Management & Lean Six Sigma
Analytical Tools
Supply Chain Management & Strategies
Service Operations Management
Duration:
10 Months
IIM Lucknow
IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics
Starts on
Jan 27, 2024
Get Details
"We've made significant progress by scaling down R&D as respiratory trials conclude, renegotiating supplier agreements, and reducing manufacturing costs," Bancel said in the memo.
Moderna had said earlier this year it expects
operating costs
to be between $4.7 billion and $5 billion for 2027.
The Cambridge, Massachusetts-based biotech has been banking on revenue from newer mRNA shots, including its experimental COVID-flu combination vaccine, to make up for falling sales of its COVID-19 shot and less-than-expected uptake of its respiratory syncytial virus vaccine.
Live Events
But investor concerns about the prospects of new shots and the changes in vaccine policy under U.S. Health Secretary and vaccine skeptic Robert F. Kennedy Jr. have led to a more than 20% decline in Moderna's shares this year.
The stock, which has lost more than 90% of its value since the pandemic-era highs, was trading about 4% down on Thursday.
Moderna had said in May it did not expect regulatory approval for its combination shot until 2026, since the U.S. Food and Drug Administration asked for late-stage data showing the vaccine's efficacy against the flu.
The company had previously hoped to launch the vaccine for the autumn respiratory disease season in 2025 or 2026.
Bancel in the memo reiterated the company's target to have eight more approvals for its products in the next three years.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
10 minutes ago
- Mint
‘Is it even legal': Indian techie claims Hyderabad firm ‘won't give exit documents' if quit within a year, sparks debate
A post by a software engineer on Reddit has gone viral and sparked intense debate across India's tech circles, after revealing a startling clause in his new company's HR policy: no exit documents unless you complete a full year. Posted on the subreddit r/developersIndia, the user Royal-Airline9579 shared their shock after discovering this condition buried in their offer letter. 'Just joined a new company recently and found out something pretty shocking in the HR policy. If you leave the company within 12 months, they won't give you any exit documents — no experience letter, no relieving letter, nothing,' the Redditor wrote. 'Basically, it's like your time there 'didn't exist' if you quit early.' The Reddit user said they understood companies wanting to control high attrition, but called the policy 'super unfair.' 'Especially if someone leaves due to a toxic work environment, better opportunities, health reasons, or literally anything valid.' The Reddit user added that the policy was clearly mentioned in the offer letter, and the company in question is a small, Hyderabad-based service firm with around 100 employees. The post quickly caught fire, with hundreds of comments pouring in. 'A shady organisation's offer letter cannot override the labour laws created to protect us from this alleged mischief. If anything goes south tomorrow, you will always have respective state' labour laws in your favour to fight against it,' one Redditor commented. Another wrote: 'All paper contracts are worth nothing. Not enforceable. Unless it's exactly abiding by laws mentioned. Also, offer letters aren't done on Bond Papers, there's nothing.' Many said the clause was being used to trap employees who might otherwise switch jobs for better offers or a healthier work-life balance. 'This is not "kinda shady". This is extremely shady. Run from such places. Not worth your time at all,' the third user wrote. 'Brother I have multiple short tenures in my CV (6 years, 7 companies) so you get the gist. While I do get asked a lot about it by HRs and some companies definitely must be rejecting me, I'm on my 8th company currently and 7th year of work experience. Might've been a red flag few years back, not so much now. Also, name and shame the company,' the fourth shared. 'All such things in the offer letter tell you that the company has a toxic work culture,' the fifth user remarked.
&w=3840&q=100)
Business Standard
10 minutes ago
- Business Standard
Prestige Estates Q1FY26 results: Profit up 1.46%, revenue grows 21.94%
Bengaluru-based real estate developer Prestige Estates Projects on Tuesday reported a consolidated net profit of Rs 311.5 crore for the first quarter of financial year 2025–26 (Q1FY26), ended 30 June 2025, marking a 1.46 per cent year-on-year (Y-o-Y) increase. The company posted revenue of Rs 2,468.7 crore during the period, up 21.94 per cent from Rs 2,024.5 crore in the same quarter last year. In a recent development, Prestige Estates Projects — directly and through its wholly owned subsidiary — acquired an additional 40 per cent partnership interest in Apex Realty Ventures LLP. Following this acquisition, Apex Realty Ventures LLP has become a wholly owned subsidiary, the company said in a filing to the BSE. Prior to this transaction, Prestige held a 60 per cent stake in Apex Realty Ventures. On the expansion front, Prestige Estates Projects plans to invest around Rs 10,000 crore over the next six years to develop a 62.5-acre township in Ghaziabad, Uttar Pradesh. This project marks its entry into the Delhi–NCR housing market and was announced in April this year. The company is also developing a commercial project in Delhi's Aerocity, which includes hotels and office spaces. In June, the company announced its intention to launch multiple residential projects across major cities in the current fiscal year, targeting an estimated revenue of over Rs 42,000 crore. The expansion aims to capitalise on strong consumer demand in the housing sector. The upcoming projects are planned for key markets including Bengaluru, Chennai, Hyderabad, Mumbai, Delhi–NCR, and Goa. The company announced its results post market hours on Tuesday. At the time, Prestige Estates Projects shares were trading at Rs 1,608.05 apiece, up 0.13 per cent on the BSE.
Economic Times
29 minutes ago
- Economic Times
Legal tech startup August raises $7 million from New Enterprise Associates, Pear VC
Legal tech startup August has raised $7 million in a funding round led by New Enterprise Associates (NEA) and Pear VC. The company is building artificial intelligence (AI) tools specifically for midsize law firms. ADVERTISEMENT The round also saw participation from Afore Capital, several law schools, and angel investors, including Gokul Rajaram, and senior executives from companies like Ramp, OpenAI, and Bain Capital Ventures. Founded in 2023 by Rutvik Rau, Thomas Bueler-Faudree, and Joseph Parker, August offers modular AI agents designed to automate document-heavy legal work like contract reviews, due diligence, and discovery preparation. The platform caters specifically to midsize law firms, a segment the company estimates includes over 50,000 firms globally employing more than half a million lawyers. The New York-based company, previously known as Vecflow, has also been expanding into the Indian market. It is working with law firm Economic Laws Practice (ELP), where it claims to have helped cut due diligence time by 60%. August's tools are also being piloted by other law firms in the generic legal AI tools aimed at large global firms, August said its software is tailored to local legal environments, and its modular AI agents are designed to align with regional laws, disclosure norms, and document standards.'We realised that these midsize firms are actually extremely innovative, because they're trying to provide the best client services. Their clients are extremely cost-sensitive, and that creates the right environment to use AI and really reap the benefits. But at the same time, we saw that most existing players are focussed only on the big law segment,' CEO Rau told ET. ADVERTISEMENT August said its platform can be deployed securely within a firm's internal network to comply with data residency the new funding, August plans to expand its engineering, product, legal, and sales teams. It also aims to deepen its presence in markets like India, where midsize firms are looking to improve efficiency and manage costs through automation. ADVERTISEMENT 'We see tremendous potential in the midsize legal market, where firms are eager for innovation that drives meaningful ROI,' said Tiffany Luck, partner at NEA. 'August's AI platform and custom agents enable midsize firms to deliver exceptional client value and drive significant growth.'
