Layoffs: Wegovy-maker, Novo Nordisk, has revealed plans on Wednesday to eliminate 9,000 employees as part of a global restructuring. The initiative is expected to cut costs by 8 billion Danish crowns (approximately $1.26 billion) each year, as the firm faces growing competition from its US rival, Eli Lilly.
The decision comes after the Ozempic-maker in August announced a hiring freeze across roles which were not critical to its business.
9,000 employees to lose jobs
“Novo Nordisk today announced a company-wide transformation to simplify its organisation, improve the speed of decision-making, and reallocate resources towards the company’s growth opportunities in diabetes and obesity,” it said in a statement.
The company added, “The job cuts will impact all the areas they operate in, and in the short run, will not impact sales and production division.”
The company added that oral semaglutide for obesity is under review at the FDA and the announcement on job cuts does not impact this application.
Of these, around 5,000 employees in Denmark will lose jobs. The company currently stands strong with 78,400 employees, Reuters reported.
What did the newly appointed CEO say?
Mike Doustdar took over as the CEO of Novo Nordisk in August this year, succeeding Lars Fruergaard Jørgensen.
“Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well,” the newly appointed CEO, Mike Doustdar, said in the statement.
The CEO added, “This means instilling an increased performance-based culture, deploying our resources ever more effectively, and prioritising investment where it will have the most impact – behind our leading therapy areas.”