NOVO NORDISK TO CUT 9,000 JOBS IN RESTRUCTURING – The restructuring aims to save 8 billion Danish crowns annually
Novo Nordisk will cut 9,000 jobs, or about 11.5% of its workforce, in a restructuring to save 8 billion Danish crowns annually, it said today, as it battles rising pressure from U.S. rival Eli Lilly.
The company, which is also known for its Ozempic diabetes treatment, already said in August that it had implemented a global hiring freeze covering job roles that were not critical for its business. Novo, which currently has 78,400 positions globally, said about 5,000 of the job cuts will be in its native Denmark.
As part of the restructuring, Novo will report one-off restructuring costs of 9 billion Danish crowns in the third quarter, including impairment charges, but also expects 1 billion crowns of savings in the fourth quarter, it said. Novo said its operating profit growth this year is now expected at between 4% and 10%, down from between 10% and 16% seen last month, changing solely due to the restructuring costs.
Novo, which became Europe’s most valuable listed company worth $650 billion last year on booming sales of Wegovy, is facing a pivotal moment as the medicine loses market share and sees sales growth slow, especially in the United States.
