Moderna Cuts 10,000 Jobs and Cuts Expenses by $1.5 Billion Amid Business Decline

Moderna is cutting 10% of its workforce and reducing annual operating expenses by $1.5 billion through 2027. The biotech firm's revenues have tumbled as vaccination rates fall and Spikevax sales dry up. Despite a promising pipeline, MRNA stock has crashed 94% from its 2021 peak and is trading at 3.3 times sales, lower than its five-year average multiple.

Moderna (MRNA), a biotech firm known for its pioneering mRNA technology, has announced a significant restructuring aimed at cutting costs and realigning its business model. The company is reducing its workforce by approximately 10% and plans to decrease annual operating expenses by $1.5 billion through 2027. This move follows a decline in revenues, primarily driven by a drop in vaccination rates and sales of its COVID-19 vaccine, Spikevax [1].

The decision to trim the workforce comes as part of a broader strategy to streamline operations and focus on a promising pipeline of next-generation mRNA vaccines in areas such as oncology, rare diseases, and latent viruses. However, the company's stock has faced significant challenges, dropping by more than 94% from its pandemic highs and trading at a valuation of 3.3 times sales, which is lower than its five-year average multiple [1].

Moderna's second-quarter earnings report, released on August 1, 2025, reflected the company's ongoing efforts to adapt to the post-pandemic market. Despite a 41% year-over-year decline in revenue, the company reported a net loss of $2.13 per share, which was better than Wall Street's projections and last year's results. The majority of the revenue came from Spikevax sales, which totaled $114 million for the quarter, marking a 38% decline from the previous year but exceeding consensus estimates [2].

The company's financial outlook for 2025 has been revised downward, with total sales now expected to range between $1.5 billion and $2.2 billion, a reduction of $300 million from the earlier forecast. This adjustment is primarily due to a timing shift in the delivery of COVID vaccine shipments to the U.K. from the second half of the year into the first quarter of 2026 [2].

Analysts remain cautious about Moderna's prospects, with the consensus rating being a "Hold." While some analysts see potential in the company's pipeline, others are skeptical about the long-term growth story, particularly given the uncertainty surrounding COVID vaccine sales in the post-pandemic world [1].

Moderna's stock has shown significant volatility, with a mean price target of $41.90 suggesting more than 57% upside potential from current levels. However, the Street-high target of $198 implies a potential rally of up to 644% [1].

As Moderna navigates these challenges, it continues to focus on its R&D efforts, including the phase 3 study of its cytomegalovirus (CMV) vaccine candidate, mRNA-1647. The company has also elected to incorporate additional secondary endpoints into the trial to better understand the potential value of the vaccine [2].

References:
[1] https://www.barchart.com/story/news/33972262/moderna-is-cutting-10-000-jobs-as-its-business-erodes-how-should-you-play-mrna-stock-here
[2] https://www.fiercepharma.com/pharma/despite-ongoing-decline-modernas-spikevax-sales-beat-expectations-q2