Novo Nordisk To Lay Off 9,000 Jobs as Part of Restructuring

Novo Nordisk will lay off 9,000 jobs as part of a restructuring plan to reignite growth amid intense competition from the drug industry. The structuring plan is expected to save the medical company close to $1.25 billion annually. The decision to fire staff comes after the firm experienced a drop in sales due to compounded copycat drugs making their way into the markets. The copycat drugs are available at cheaper rates, which has led to a major drop in revenue.

Also Read: ANZ Bank To Cut 3,500 Jobs in a Major Restructure Plan

Also Read: ANZ Bank To Cut 3,500 Jobs in a Major Restructure Plan## Novo Nordisk To Fire 9,000 Employees by 2026

Source: LinkedInIts rival pharmaceutical company Eli Lilly has launched compounded copycat drugs, eating into Novo Nordisk’s revenues. In addition, Novo Nordisk is facing slowing momentum in its obesity and diabetes franchises. The firm’s first highly effective obesity drug, Wegovy, was a success in both the US and European markets. After the Coronavirus lockdowns, the medical firm ramped up its hiring spree and doubled its workforce over the past five years.

Now that its revenues are seeing a dip, Novo Nordisk is reversing its capacity by laying off 9,000 jobs. The trouble does not end there; investors are staying away from the stock due to dwindling profits. In a year alone, the stock price has dipped close to 60% and remains in the bearish territory. At the start of the year, its stock price was $638 and reached $350 in September.

Also Read: Belarus Wants Banks To Use Cryptocurrency To Escape Sanctions

Also Read: Belarus Wants Banks To Use Cryptocurrency To Escape SanctionsThe restructuring plan comes after the board of directors appointed Mike Doustdar as its new CEO in August. Insiders claim that Doustdar’s appointment was made after the board tasked him with the restructuring plan. “This is the new CEO’s first major move to simplify Novo Nordisk’s structure and redirect resources toward growth in diabetes and obesity, rather than just cutting costs to boost margins,” said Michael Novod, head of equity research for Denmark to Reuters.

“This is the new CEO’s first major move to simplify Novo Nordisk’s structure and redirect resources toward growth in diabetes and obesity, rather than just cutting costs to boost margins,”