Novo Nordisk, the Danish pharmaceutical company known for its weight loss medication Wegovy, revealed on Wednesday that it will be laying off 9,000 employees, which accounts for 11% of its total workforce. Among these cuts, approximately 5,000 jobs will be eliminated in Denmark, while details regarding the location of the remaining layoffs have not been provided. This move comes as the company also manufactures Ozempic, a diabetes injection that has also been shown to aid in weight loss.
The company indicated that these job eliminations are part of a strategy to save $1.25 billion by 2026, with intentions to redirect these funds toward research and development focused on diabetes and obesity treatments. Novo Nordisk attributed the decision to the evolution of a more competitive and consumer-driven obesity market, which has led to decreased growth rates within the company. The job cuts will be initiated immediately, with affected employees being notified over the upcoming months in accordance with local labor regulations.
Mike Doustdar, President and CEO of Novo Nordisk, emphasized that the markets are changing, particularly in the field of obesity treatments, making it imperative for the company to adapt as well. He highlighted the need for a stronger performance-based culture and more effective resource allocation, prioritizing investments in areas that would yield the greatest impact, particularly in their primary therapy domains. Following the announcement, Novo Nordisk's shares saw a slight increase, reflecting investor reactions amid the impending changes. Doustdar was appointed as the CEO in May, succeeding Lars Fruergaard Jorgensen, who departed as the company faced challenges with its stock price and competition from rival Eli Lilly's weight loss products. The stock of Novo Nordisk had previously surged following the launch of Wegovy and Ozempic, both of which utilize semaglutide as a key ingredient, contributing to the company’s significant market capitalization.
6 Comments
Matzomaster
It's hard to believe that cutting jobs is necessary when they have successful products like Wegovy and Ozempic.
Rotfront
Job cuts can be tough, but sometimes they're necessary for a company to thrive and innovate.
Karamba
This is outrageous! 9,000 employees losing their jobs for corporate greed.
ZmeeLove
Investing in research and development is crucial for improving treatments. It's a strategic move.
Bermudez
This seems like a desperate measure to please investors rather than truly benefit patients.
Comandante
It’s great that they are redirecting money to research for diabetes and obesity treatments!