Danish pharmaceutical giant Novo Nordisk (NVO) is demanding that employees return to the office full-time after announcing nearly 10,000 job cuts.
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The maker of weight-loss drug Wegovy is requiring all remaining staff to return to the office as new CEO Maziar Mike Doustdar puts his stamp on the company. In recent days, Novo Nordisk announced that it is eliminating 9,000 jobs as it tries to reduce costs amid slumping sales of Wegovy and other medications.
Management at Novo Nordisk is looking to bring staff together as it faces increased competition from Eli Lilly (LLY) and other rival pharmaceutical companies. It’s been reported that Novo Nordisk’s previous work-from-home policies varied from one country and department to another. But now, all staff in all jurisdictions will be required to be in the office full-time, five days a week.
Growing Trend
Rescinding previous work-from-home arrangements appears to be a growing trend among corporations worldwide. Companies ranging from Wall Street bank JPMorgan Chase (JPM) to e-commerce giant Amazon (AMZN) have ordered staff to return to the office full-time this year.
However, Novo Nordisk said it would be possible for some select employees to make individual arrangements with managers so that they can still work from home part of the time. The changes to Novo Nordisk’s workforce come with its stock down 36% this year, knocking $450 billion off its market capitalization.
Is NVO Stock a Buy?
The stock of Novo Nordisk has a consensus Moderate Buy rating among seven Wall Street analysts. That rating is based on three Buy and four Hold recommendations issued in the last three months. The average NVO price target of $68.50 implies 25.99% upside from current levels.
