Summary by Futu AI
Novavax, Inc. has announced a significant workforce reduction as part of its global restructuring and cost reduction plan. On January 30, 2024, the company's Board of Directors approved a 12% reduction in its global workforce, which includes a 9% cut in full-time employees and the remainder affecting contractors and consultants. The company anticipates that the full annual impact of the cost savings will be realized in 2025, with approximately 85% of the savings expected in 2024, excluding one-time charges. Novavax is expected to incur one-time charges of $4 million to $7 million for employee severance and benefit costs, primarily within the first quarter of 2024. This reduction will result in a workforce that is about 30% smaller than it was at the end of the first quarter of 2023. The company has made forward-looking statements regarding the expected timing and impact of the cost savings from the restructuring plan, but also cautions that these statements involve risks and uncertainties that could cause actual results to differ materially from expectations.