Novo Nordisk Announces Major Workforce Reduction
(MENAFN) Danish pharmaceutical powerhouse Novo Nordisk revealed on Wednesday plans to cut roughly 9,000 jobs, representing 11.5% of its global workforce, as part of a restructuring initiative designed to streamline operations and concentrate on diabetes and obesity therapies.
"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 company stated in a formal announcement.
"As part of the transformation, Novo Nordisk intends to reduce the global workforce by approximately 9,000 of the 78,400 positions in the company, with around 5,000 reductions expected in Denmark," it added.
The firm explained that its rapid growth in recent years has introduced operational complexity and higher expenses.
The restructuring is aimed at addressing these challenges while allowing for increased investment in scientific research, commercial capabilities, and manufacturing to reach more patients.
Novo Nordisk projected that the layoffs will incur one-time costs of 8 billion Danish kroner ($1.26 billion).
Due to this charge, the company now anticipates operational profit growth of 4%–10% at constant exchange rates for this year, down from the 10%–16% range forecasted in its August second-quarter results.
The company also indicated that the workforce reduction will produce annualized savings of 8 billion Danish kroner ($1.26 billion) by the close of 2026.
“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," CEO Mike Doustdar remarked.
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