Moderna, based in Cambridge, will lay off 10% of its workforce and expects "to be fewer than 5,000 colleagues strong" by the end of the year as part of its effort to cut costs.
In a statement on Thursday sharing the news, Moderna CEO Stéphane Bancel called the layoffs "a difficult decision but [a] necessary step forward."
"This decision was not made lightly," Bancel continued. "It impacts teammates and friends who have dedicated themselves to our mission and who have helped build Moderna. 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."
Moderna previously committed to reducing its annual operating expenses by around $1.5 million by 2027, Bancel said.
"Our mission remains unchanged," Bancel said. "With three approved products and the potential for up to eight more approvals in the next three years, the future of Moderna is bright. We are sharpening our focus, becoming leaner and staying ambitious in oncology, rare diseases and latent viruses."
Moderna plans to provide more information about the layoffs to employees on Friday at the company's town hall.
The company previously reported that it had 5,800 employees at the end of 2024, Kelly Cunningham, associate director of communications and media, told MassLive.
The news comes months after Moderna announced in May that the Health and Human Services (HHS) Department had withdrawn the funds awarded to Moderna in July 2024 and in January to cover the development of the mRNA-based bird flu vaccine.
At the time, Bancel said that the end of the funding created uncertainty, but Moderna was "pleased by the robust immune response and safety profile observed in this interim analysis of the Phase 1/2 study of our H5 avian flu vaccine and we will explore alternative paths forward for the program."
A Moderna spokesperson confirmed with MassLive that the layoffs were not connected with the terminated contract.
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