Novo Nordisk (CSE:NOVOb) said on Wednesday it will cut 9,000 jobs worldwide as the maker of popular weight-loss drug Wegovy and diabetes treatment Ozempic seeks to reduce costs and streamline operations.
The cuts amount to around 11.5% of the Danish drugmaker’s total workforce of 78,400, with about 5,000 positions to go in Denmark.
Novo said the restructuring would generate annual savings of 8 billion Danish crowns ($1.27 billion) by 2026, although it expects one-off charges of 9 billion crowns in the third quarter. About 1 billion crowns in savings are expected to be realised in the fourth quarter.
The savings will be redirected to growth opportunities in diabetes and obesity, the company said.
Chief Executive Mike Doustdar, who took over at helm of the company last month, said the changes would simplify the organization and help it focus more closely on diabetes and obesity treatments, its largest businesses.
Novo cut its full-year operating profit growth forecast to 4-10% from 10-16%, citing the restructuring costs.
Source :
https://www.investing.com/news/stock-market-news/novo-nordisk-to-cut-9000-jobs-in-global-restructuring-4232621
