Novo Nordisk A/S will slash 9,000 jobs globally and made its third cut of the year to its profit forecast as it fights to recover from a steep slump in performance.
The Danish drugmaker aims to save DKK 8 billion ($1.3 billion) by the end of 2026 with the cuts, which will hit 11% of its workforce, including 5,000 reductions at home in Denmark.
Novo said operating profit will grow between 4% and 10% at constant exchange rates. The company had predicted in February that profit could grow as much as 27%.
Novo said it would communicate with employees whose jobs are being cut over the next few months. The firm added that it will take other steps to boost its “performance culture.”
The cuts were announced Wednesday as part of a company-wide transformation to simplify its organization, improve decision-making speed and reallocate resources toward growth opportunities in diabetes and obesity.
Novo employees have anticipated job cuts since Mike Doustdar took over as chief executive officer last month and called for more discipline and prudence around spending. Novo is fighting to regain its footing after losing its lead in the US obesity market to rival Eli Lilly & Co. The company has also struggled to fend off cheaper copycat versions of its drugs from compounding pharmacies in the US.
Doustdar had already frozen hiring for non-essential roles and retracted job offers for new joiners who hadn’t started yet.
“Sometimes the hardest decisions are the right ones for the future we’re building,” Doustdar said on LinkedIn. “This is the right thing to do for the long-term success of Novo Nordisk.”
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