The headquarters of Modern Inc. in Cambridge, Massachusetts, on March 26, 2024.
Adam Glanzman | Bloomberg | Getty images
Modern On Thursday he said he plans to reduce approximately 10% of his global workforce by the end of the year, as Covid Shoot's sales continue to decrease and the company fights with uncertainty in the vaccine market.
In a memorandum for employees, the Modern CEO, Stephane Banll, said the company expects to have less than 5,000 workers by the end of the year. Modern had approximately 5,800 full -time employees in 18 countries as of December 31, 2024, according to its annual report of 2024.
Modern shares have fallen more than 20% this year. In May, the company reported sales of vaccines in the first quarter that lost the estreet estreet estimates. Modern is also navigating policy obstacles under the Secretary of Health and Human Services, Robert F. Kennedy Jr., who has taken measures to change vaccines and potentially threatening access to shooting in the United States.
Also in May, Modern said it will reduce annual operating expenses by approximately $ 1.5 billion by 2027. That objective adds to the cuts that the company previously announced.
Modern will provide another update on your business when you publish quarterly results on Friday morning.
In the note, Banl said that Modern has progressed significantly towards cuts by reducing research and development, especially when he concludes tests on respiratory products, renegotia suppliers agreements and reduces manufacturing costs.
“They did their best to avoid affecting the jobs,” he said. “But today, the remodeling of our operational structure and the alignment of our cost structure with the realities of our business are essential to remain focused and financially disciplined, while continuing to invest in our science along the way until 2027.”
He said that the “Modern Future is brilliant,” and notes that it now has three approved products and the potential of up to eight more in the next three years. In May, the Food and Drug Administration approved the third modern product, a next -generation COVID shot.
But Banl said that “this decision was not made lightly.”
“It impacts teammates and friends who have dedicated themselves to our mission and have helped build modern,” he said. “I want to express, in the name of the entire Executive Committee and on behalf of the patients who have served, our deepest thanks for everything that has contributed.”
