Wegovy-maker Novo Nordisk to chop round 9,000 jobs

Danish pharmaceutical big Novo Nordisk on Wednesday introduced plans to chop round 9,000 roles, or roughly 11.5% of its world workforce.

“Novo Nordisk at the moment introduced a company-wide transformation to simplify its organisation, enhance the velocity of decision-making, and reallocate assets in the direction of the corporate’s progress alternatives in diabetes and weight problems,” the corporate, which produces the Wegovy weight reduction remedy, mentioned in a press release.

“As a part of the transformation, Novo Nordisk intends to cut back the worldwide workforce by roughly 9,000 of the 78,400 positions within the firm, with round 5,000 reductions anticipated in Denmark.” 

Shares had been up 2.5% by at 8:18 a.m. London time (3:18 a.m. ET), paring earlier losses.

The corporate mentioned the headcount discount would incur a one-off price of 8 billion Danish kroner ($1.26 billion).

On account of the one-off prices, the corporate mentioned its now anticipate full-year working revenue progress of 4% to 10% at fixed trade charges, down from the ten% to 16% outlined in its second-quarter ends in August.

The overhaul marks the primary main transfer by CEO and President Maziar Mike Doustdar, who took the reins on the pharma big final month following the shock ouster of Lars Fruergaard Jørgensen.

Novo Nordisk, as soon as the primary mover in weight-loss medicine, has been struggling to take care of market share — particularly in the important thing U.S. area — amid a slew of provide chain points and elevated competitors from rival Eli Lilly and cheaper compounded weight reduction medicine.

Meantime, the agency has struggled to shake detrimental sentiment following a collection of disappointing trial outcomes for its next-generation weight problems drug candidate CagriSema.

“Our markets are evolving, notably in weight problems, because it has develop into extra aggressive and consumer-
pushed. Our firm should evolve as nicely. This implies instilling an elevated performance-based tradition, deploying our assets ever extra successfully, and prioritising funding the place it’s going to have probably the most impression – behind our main remedy areas,” Doustdar mentioned in a press release.

Throughout a July investor name confirming his appointment, Doustdar had mentioned he was assuming the function with a way of “urgency” and three key priorities. These included defending Novo’s management in diabetes and weight problems remedy, fostering a excessive efficiency tradition and realigning the corporate’s price base and driving efficiencies.