Moderna’s second-quarter sales fell less sharply than Wall Street expected as it works to expand its offerings amid weakening demand for its Covid-19 vaccine.

Despite the overall decline in commercial product revenue, Moderna was also pleasantly surprised by Q2 Spikevax sales, which came in above the company’s expectations thanks to a “stronger-than-expected U.S. spring booster season,” CFO Jamey Mock said on an analyst call Friday.

The layoffs are part of an ongoing effort to reduce operating costs amid government and competitive challenges to its vaccine business.

Biotech giant Moderna announced it will lay off 10% of its workforce in a move CEO Stéphane Bancel called “a difficult decision but necessary step forward,” in an internal memo sent to employees today.

Moderna said on Thursday it would trim roughly 10% of its global workforce and have fewer than 5,000 employees by the end of the year, as the biotech accelerates its cost-cutting efforts amid declining sales of COVID-19 vaccines.