Novo Nordisk to cut about 9,000 jobs in cost-saving move
Danish pharmaceutical giant Novo Nordisk said Wednesday it will cut about 9,000 jobs, or 11.5% of its global workforce, as part of a restructuring aimed at streamlining operations and focusing on diabetes and obesity treatments, Anadolu Agency reports.
"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 firm said in a statement.
"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 noted.
The company said rapid expansion in recent years has added complexity and increased costs. The restructuring is intended to address that issue and enable greater investment in science, commercial capabilities, and manufacturing to reach more patients.
Novo Nordisk estimated the layoffs will result in one-time expenses of 8 billion Danish kroner ($1.26 billion).
Because of that charge, the company now expects operational profit growth of 4%–10% at constant exchange rates this year, down from a 10%–16% projection given in its August second-quarter results.
It said the workforce reduction will generate annualized savings of 8 billion Danish kroner ($1.26 billion) by the end 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 said.
As earlier reported, Germany's auto industry cut more than 51,000 jobs over the past year as weak demand, U.S. tariffs and the costly shift to electric vehicles weighed heavily on the sector, according to a report by consultancy EY.