Novo Nordisk to reduce workforce by 9,000 positions

Novo Nordisk (NVO) announced a company-wide transformation to simplify its organization and reallocate resources towards the company’s opportunities in diabetes and obesity. As part of the transformation, Novo Nordisk intends to reduce the global workforce by approximately 9,000 of the 78,400 positions in the company, with around 5,000 reductions expected in Denmark. The transformation reflects the company is competing in a more dynamic and consumer-driven obesity market, as evidenced by the recent slowdown in growth. Over the past years, Novo Nordisk’s rapid scaling has increased organizational complexity and costs. The workforce reduction is expected across the company, including staff areas and headquarters functions, and is expected to deliver total annualized savings of around DKK 8B by the end of 2026. The savings will be redirected to growth opportunities in diabetes and obesity, including commercial execution initiatives and R&D programs. The implementation will begin immediately, and the company expects to communicate with affected employees over the next few months, pending negotiations as per local legal labor market requirements. Further, additional initiatives are to be implemented to enhance organizational focus, performance culture and speed of decision-making as well as cost efficiencies.