COVID-19 vaccine maker Novavax (NVAX.O) said on Wednesday it will reduce about 12% of its total workforce as the cash-strapped biotech company seeks to further cut costs amid doubts about its ability to remain in business.
The Maryland-based company had said in May it would cut a quarter of its workforce, just months after its "going concern warning". Since then, Novavax has been eyeing further cost cuts as it focuses on its updated COVID shot and the development of its COVID and flu combination vaccine.
About 30% of full-time jobs would be impacted by both the layoff rounds, the company said in an email response. The vaccine maker had 1,992 full-time employees as of Feb. 21, 2023, according to the latest annual regulatory filing.
Novavax said the decision is part of its intention to bring down expenses below $750 million this year, which it had disclosed during its third-quarter earnings call in November.
Novavax sees the full annual impact of the cost savings to be realized in 2025, and expects to incur one-time charges of about $4 million to $7 million in the first quarter of 2024.
Shares of the biotech rose nearly 2% to $4.10.
