Vaccine maker Novavax announced Tuesday that it's reducing its global workforce by 25% in an effort to significantly cut down on expenses and shift its focus to key priorities. 

The cuts will affect 20% of full-time Novavax employees. The rest will of the cuts will impact contractors and consultants, according to a filing with the Securities and Exchange Commission (SEC). The company has 1,992 full-time employees.

The company also plans to trim next year’s costs for research and development as well as selling, general and administrative expenses by about 40% to 50% compared with 2022.

Vaccine makers are preparing for sales to slow this year, particularly in the first half, as they switch from supplying the U.S. government to selling their shots commercially. 

"We outlined significant measures intended to reduce spend, extend our cash runway, and operate more efficiently," CEO John Jacobs said in its latest earnings report. "Combined with our focus on revenue generation from Nuvaxovid and management of our current liabilities, these measures should strengthen our cash position and our potential for the long-term growth and stability of Novavax."