Diabetes giant cuts jobs
Danish insulin maker Novo Nordisk tries to relieve financial pressure by laying off 1,000 staff. The step was necessary due to challenges on the US market, the company said.
Novo Nordisk cannot complain about lack of revenue – yet. Just about a month ago, the diabetes major announced an increase in sales and profit both. However, the environment is getting more difficult, the company said, especially on the US market, where it generates about half of its turnover. To reduce operating cost, Novo Nordisk has now announced it would lay off 1,000 of its employees.
The reductions are expected to affect R&D units and the Bagsværd headquarter, as well as positions in the global commercial organisation. Around half of the layoffs are expected to be in Denmark. After the cuts, about 42,300 people will remain working for the diabetes expert.
"We deeply regret that good colleagues stand to lose their jobs, and it has been a difficult decision to make," says President and CEO Lars Rebien Sørensen. "However, we have concluded that it is needed in order for us to have a sustainable balance between income and costs. In the current situation, we have to prioritise investments in key product launches that will bring innovation to patients and drive our future growth."
Sørensen will be leaving the company as well. Earlier this month, Novo Nordisk announced his retirement as CEO.
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