Biotech company Moderna said Thursday it plans to cut 10% of its global workforce and expects to have fewer than 5,000 employees by the end of the year.
The move is part of the company’s ongoing effort to lower its annual operating expenses by around $1.5 billion by 2027, Moderna CEO Stéphane Bancel said Thursday in an internal letter to employees.
Moderna has been relying on its new mRNA vaccines, including its experimental COVID-flu combination shot, to offset declining sales of its COVID-19 vaccine and respiratory syncytial virus vaccine, Reuters reported. 
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The company, based in Cambridge, Massachusetts, has made efforts to avoid job cuts, including scaling down research and development, lowering manufacturing expenses and renegotiating supplier contracts, Bancel said.
“This decision was not made lightly,” he said. “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.”
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Earlier this year, the company estimated its annual operating costs for 2027 to be between $4.7 billion and $5 billion, according to Reuters.
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The company’s stock is down more than 90% from what it was during the COVID-19 pandemic, according to Reuters.
In the letter, Bancel noted that Moderna has three approved products and could have as many as eight more product approvals in the next three years. He also said he would provide employees with more details about the layoffs at a company meeting Saturday.
“We are sharpening our focus, becoming leaner, and staying ambitious in oncology, rare diseases and latent viruses,” Bancel said.
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Moderna did not immediately respond to FOX Business’ request for comment.
