Novo Nordisk A / S will cut 9.000 jobs worldwide, while he is trying to recover the ground lost against its rival Eli Lilly & Co. in the market of drugs against obesity.
The Danish company, which produces the drugs Ozempic and Wegovy declared today that he wanted save 8 billion crowns ($ 1,3 billion) by the end of 2026, reinvesting the money in the development and sale of new drugsThe cuts will hit 11% of its workforce, including 5.000 layoffs in Denmark, where mass layoffs are very rare.
Novo also predicted that theoperating profit will grow between the 4% and the 10% at constant exchange rates, down from the previous forecast of February of a growth up to 27%. Novo also expects approximately 4 billion crowns more between depreciation, devaluations and impairment losses this year totaling around 21 billion crowns, largely due to the closure of “early non-strategic projects” in its new drug pipeline.
Le Novo shares they went up up to exceeding 4% on the Copenhagen stock exchange, After an initial decline, shares have plunged 12% over the past 60 months, after the company briefly became Europe's most valuable company thanks to soaring demand for new weight-loss treatments. By late morning, Novo shares were trading at 352,20 Danish kroner, up 3,99%, their highest level of trading.
Cuts in Expectations. The Challenge with Eli Lilly Continues
I employees Novo had been expecting these staff cuts since last month Mike Doustdar took over as CEO and since then they have called for greater discipline and prudence in managing expenses.
The Danish company had pioneered the market of obesity drugs with Ozempic and Wegovy, its fortunes began to change last year when a Vaccine experimental even more powerful, CagriSema, failed to achieve the promised weight loss effects. Novo is now pinning some of its growth hopes on a pill-sized version of WegovyThe pharmaceutical company is fighting for regain his position after losing leadership in the US obesity market to Eli Lilly, while also having to fend off cheaper imitations of its drugs from specialty pharmacies in the United States.
For years Novo had a reputation for having a oversized workforceIn 2024, it employed 1.835 people, generating $1 billion in revenue each. Lilly, on the other hand, managed to generate the same result with just 1.044 employees, analysts note.
