CureVac (NASDAQ:CVAC) layoffs are coming for the vaccine maker’s employees as it prepares to undergo a restructuring to streamline its business.
CureVac has announced that its layoffs will affect 30% of its global workforce. The company says this will result in operating cost reductions of more than 30% per year starting in 2025.
CureVac says it expects a one-time charge of 15 million euros connected to these layoffs. It expects to incur these charges during the fourth quarter of 2024. These changes are part of a deal that will provide it with a cash runway into 2028.
What’s Behind the CureVac Layoffs
CureVac is cutting jobs after announcing a new licensing agreement with GSK (NYSE:GSK). The agreement involves the company taking over the development and manufacturing of three of its vaccine candidates, including its mRNA vaccines for seasonal influenza, Covid-19 and avian influenza.
On top of that, GSK is paying 400 million euros upfront to CureVac for this license. The offer also includes potential milestone payments of 1.05 billion euros. There are also royalties in the high single to low teens range.
CVAC stock is down 1% as of Wednesday morning. That comes with more than 5.6 million shares traded. Its daily average trading volume is about 1.2 million shares.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
