Vaccine maker Novavax has announced that the company will layoff 25% of its workforce. The biotech company said that this is done as part of a new restructuring plan. As part of this plan, Novavax will also consolidate its facilities and infrastructure. As per reports, Novavax had around 2,000 employees by the end of 2022.
"Reducing our workforce has been a difficult decision, but we believe it was necessary to better align our infrastructure and scale to the endemic COVID opportunity," said John C Jacobs, President and Chief Executive Officer, Novavax in a statement.
The decision to let go employees has come just days after the World Health Organisation, declared Covid is no longer a global health emergency. Global vaccine makers including Moderna and Pfizer are seeing a drop in demand for Covid-19 vaccines. However, Novavax said that it is focussing on updating its Covid vaccine for the fall vaccine season.
In 2022, Nuvaxovid, Novavax's covid vaccine helped the biotech company to increase its revenue. The company recorded $1.9 billion total revenue, which is 73% more than the revenue recorded in 2021.