According to the company, the announced plan is part of a company-wide transformation aimed at simplifying the organizational structure, increasing the speed of decision-making and reallocating resources to the company’s growth opportunities in the field of diabetes and obesity”. Novo Nordisk specified that it is going for massive staff reductions due to growing competition in the global market of obesity drugs.
Novo Nordisk CEO Mike Dustdar said that the obesity treatment market is becoming more competitive and consumer-oriented. Therefore, the company’s remaining employees will have to change their approach to work faster and more flexibly.
Novo Nordisk expects to save $1.3 billion by cutting jobs. The company plans to use the money to further develop its diabetes and obesity business, including commercial initiatives and research.
Along with plans to conduct mass layoffs, the pharmaceutical manufacturer released an adjusted operating profit forecast for 2025. Now Novo Nordisk expects its growth by 4-10% instead of 10-16%, which was mentioned in the press release of August 6.
As CNA notes, the Ozempic maker is lowering its forecast for the third time since the beginning of the fiscal year. The publication calls one of the main competitors of the Danish company in the global market the American Eli Lilly, which produces its own drugs against obesity.
