COVID-19 vaccine maker Novavax has announced plans to cut about a quarter of its global workforce as it seeks to reduce expenses.
The company's shares jumped as much as 40% on Tuesday as it forecast a much higher 2023 revenue than Wall Street expected and spurred hopes of a recovery for the cash-strapped biotech.
The development came even mere days after the World Health Organization ended the global emergency status for COVID-19. Novavax said that it expects to trim next year’s costs for research and development as well as selling, general and administrative expenses by about 40% to 50% compared to 2022.
The company currently has 1,992 full-time employees and the cuts will affect about 20% of the workforce or nearly 400 people.