New Delhi, Sep 10 In a major restructuring drive, Danish drug major Novo Nordisk on Wednesday announced plans to slash 9,000 jobs or 11 per cent of its global workforce and save ($1.3 billion) by the end of 2026.
The company, in a statement, said that with the restructuring, it expects to simplify, improve decision-making speed, and reallocate resources toward growth opportunities in diabetes and obesity.
Battling rising pressure from US rival Eli Lilly, the maker of blockbuster weight-loss drug Wegovy, announced its third cut of the year to its profit forecast.
The company’s Wegovy and its diabetes treatment Ozempic are reportedly losing market share and slow sales growth, especially in the US market.
"Our markets are evolving, particularly in obesity, as it has become more competitive and consumer driven. Our company must evolve as well," CEO Mike Doustdar, who only took the helm last month, said in the statement.
"This means instilling an increased performance-based culture, deploying our resources ever more effectively, and prioritising investment where it will have the most impact – behind our leading therapy areas," he added.
Novo, which currently has a global workforce of 78,400, said about 5,000 of the job cuts will be in its native Denmark. The move comes after it implemented a global hiring freeze last month for job roles not critical to its business.
“These changes are intended to enable us to do two things simultaneously -- realign resources toward high-impact R&D and commercial initiatives while creating a more agile organisation that can respond faster to the evolving needs of millions of patients with chronic diseases,” Doustdar said in a post on professional networking site LinkedIn.
“Our goal remains unchanged as we work to deepen our leadership in diabetes and obesity, broaden patient access worldwide, and continue our mission to defeat serious chronic diseases.
“Sometimes the hardest decisions are the right ones for the future we're building. I'm confident that this is the right thing to do for the long-term success of Novo Nordisk,” the CEO said.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor