Novo Nordisk to Slash 9,000 Jobs in Sweeping Overhaul
(MENAFN) Novo Nordisk, the prominent Danish pharmaceutical company, announced a sweeping organizational overhaul on Wednesday that will eliminate roughly 9,000 positions, impacting 11.5% of its global workforce. The move is designed to simplify operations and sharpen the company's focus on its core areas of diabetes and obesity treatments.
In an official statement, the firm confirmed the significant changes. "Novo Nordisk today announced a company-wide transformation to simplify its organization, improve the speed of decision-making, and reallocate resources towards the company’s growth opportunities in diabetes and obesity," the statement read. The company anticipates around 5,000 of the 9,000 job cuts will occur in Denmark, where it currently employs 78,400 people.
Company leadership attributed the decision to rapid growth that has introduced complexity and heightened costs. The restructuring is aimed at resolving these issues, allowing for increased investment in research, commercial capabilities, and production capacity to serve more patients.
The layoffs are projected to incur a one-time charge of 8 billion Danish kroner ($1.26 billion). This expense has led the company to revise its full-year operational profit forecast. The projected growth rate at constant exchange rates is now 4%–10%, a decrease from the 10%–16% forecast provided in its August second-quarter report. Novo Nordisk expects the workforce reduction to yield annual savings of 8 billion Danish kroner ($1.26 billion) by the end of 2026.
Mike Doustdar, the CEO, expressed regret over the decision but underscored its necessity for the company's future. “It is always difficult to see talented and valued colleagues go, but we are convinced that this is the right thing to do for the long-term success of Novo Nordisk,” Doustdar stated.
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