In a memo, CEO Stéphane Bancel said the job cuts are needed to align the struggling vaccine maker’s cost structure with the “realities of our business.”

The Moderna layoffs are aimed at cutting costs amid declining vaccine sales and a shifting regulatory landscape.

Moderna 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.

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.

Massachusetts-based Moderna said it plans to cut 10% of its global staff as part of its ongoing efforts to reduce annual operating expenses by around $1.5 billion by 2027.

Moderna Inc. is cutting about 10% of its workforce, part of an effort by the struggling biotech company to reduce spending as sales of its Covid vaccine decline.

The layoffs come as Moderna’s cash position has raised worries on Wall Street that the company may need to raise new capital.

The biotech company’s revenue halved in 2024, and it continues to face uncertainty in the vaccine market. Biotech giant Moderna announced it will lay off 10% of its workforce in a move CEO Stéphane Bancel called “a difficult decision but necessary step forward,

The layoffs are part of an ongoing effort to reduce operating costs amid government and competitive challenges to its vaccine business.