BioNTech (BNTX) stock was under pressure on May 5 after the multinational announced plans to eliminate up to 1,860 roles as it continues to grapple with declining COVID-19 vaccine sales.
The selloff saw BNTX slip below its 50-day moving average (MA) on Tuesday, signaling downward momentum could sustain in the near term.
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Including this pullback, BioNTech stock is down roughly 20% versus its year-to-date high.
What Layoffs Really Mean for BioNTech Stock
The layoffs represent about 25% of BioNTech’s workforce and are centered on its manufacturing operations that have become overcapacity now that the pandemic-era demand has evaporated.
According to the biotech firm, it will close or divest four of its facilities: three in Germany and one in Singapore.
Once fully executed, this restructuring will deliver about €500 million in recurring annual savings — funds the company plans on reallocating to research and development (R&D) and commercialization of cancer therapies.
This will help BioNTech transform into a diversified oncology-focused biopharmaceutical giant, its press release added.
Note that BNTX shares have a history of closing May, June, and July in the green — a seasonal trend that makes them attractive to buy on the dip.
Should You Load Up on BNTX Shares Today?
BioNTech’s first-quarter earnings underscored the urgency of the aforementioned transformation.
In Q1, the firm’s revenue crashed a worse-than-expected 35.4% to roughly €118 million, driven primarily by a significant decline in the demand for its COVID-19 vaccine.
BNTX’s adjusted per-share loss of €1.95 missed Street’s estimate of €1.27. On the plus side, however, the biotechnology company reaffirmed its full-year guidance for at least €2 billion in sales, broadly in line with the consensus.
Additionally, the board authorized up to $1 billion in stock buybacks for the next 12 months, which makes up for another strong reason to consider loading up on BioNTech shares at current levels.
BioNTech Remains Buy-Rated Among Wall Street Firms
Investors could also take heart in the fact that Wall Street analysts remain positive on BNTX stock for the remainder of 2026.
