Novavax Says Upon Restructuring Completion Resulting Company Workforce Is Expected To Be Approximately 30% Lower As Compared To 1Q'23-End
Portfolio Pulse from Benzinga Newsdesk
Novavax announced a global restructuring and cost reduction plan in May 2023, which includes a 30% reduction in workforce by the end of 1Q'23. Additionally, in January 2024, the company plans to reduce its global workforce by an additional 12%, including a 9% reduction in full-time employees and the remainder in contractors and consultants.
February 28, 2024 | 12:44 pm
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Novavax's restructuring plan includes a significant reduction in workforce, aiming for a 30% cut by the end of 1Q'23 and an additional 12% by January 2024.
The restructuring and workforce reduction could lead to short-term volatility in Novavax's stock as investors assess the impact on the company's future growth and cost structure. While cost reductions could improve profitability in the long term, the immediate reaction may be mixed due to concerns over the company's ability to sustain growth with a reduced workforce.
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IMPORTANCE 90
RELEVANCE 100