Novo Nordisk has announced that it will be reducing its workforce globally by around 9,000 people. Currently, over 78,000 people work at the company headquartered in Denmark, where around 5,000 of the cuts are expected.
These cuts are part of a company-wide transformation that the company says will ‘simplify its organisation, improve the speed of decision-making and reallocate resources towards the growth opportunities in diabetes and obesity’.
Mike Doustdar, Novo Nordisk president and CEO, said: “As the global leader in obesity and diabetes, Novo Nordisk delivers life-changing products for patients worldwide. But our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well. 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.”
The company will use the transformation to enable greater investment in its science, commercial capabilities and manufacturing ramp-up, as it strives to reach the millions of people who remain untreated.
The company remains committed to meeting rising global demand in an obesity market that has become more dynamic and consumer-driven, as demonstrated by the recent slowdown in growth.
Novo Nordisk President and CEO Mike Doustdar added: “We need a shift in our mindset and approach so we can be faster and more agile. Our transformation plan is designed to deliver this. By realigning our resources now, we will be able to prioritise investments to drive sustainable growth and future innovation for the millions of patients with chronic diseases globally, particularly in diabetes and obesity.”
The workforce reduction will begin immediately and is expected to deliver total annualised savings of around DKK8bn by the end of 2026.