:max_bytes(150000):strip_icc()/GettyImages-2197227349-d51b01eb2bae405698dcd35dc6bf561a.jpg "Novo Nordisk Cuts Around 9,000 Jobs as Weight-Loss Drugmaker Faces Growing Competition")
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Key Takeaways
- Novo Nordisk said it is laying off about about 9,000 positions or 11.5% of its workforce in a “transformation” of the drugmaker’s business.
- The maker of Ozempic and Wegovy said the cuts are part of a plan to help the company grow its diabetes and weight-loss products.
- Novo Nordisk expects the job reductions will save about $1.25 billion by the end of next year.
Novo Nordisk (NVO) is making big job cuts as the weight-loss drugmaker faces growing competition.
The pharmaceutical firm said it is slashing about 9,000 positions or 11.5% of its workforce. 5,000 of the cuts will be made in its home country of Denmark.
The company said the layoffs are part of a “transformation” designed to simplify Novo Nordisk’s organization, speed up decision-making, and shift resources to help grow its diabetes and obesity business medicines.
CEO Mike Doustdar said, “our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven.” He added the company “must evolve as well,” which means instilling “an increased performance-based culture, deploying our resources ever more effectively, and prioritizing investment where it will have the most impact—behind our leading therapy areas.”
Novo Nordisk said it expects the headcount drop will result in annualized savings of about 8 billion Danish Krone ($1.25 billion) by the end of 2026. However, it also anticipates the cuts will result in a restructuring cost of 8 billion Danish Krone this year, and is now projecting operating profit will grow 4% to 10%, down from a forecast of 10% to 16% previously.
U.S.-listed shares of Novo Nordisk were up about 2% in recent trading. They’ve lost about a third of their value this year, as rivals such as Eli Lilly (LLY) have expanded their market share in diabetes and weight-loss treatments.
