Summary
Novo Nordisk, a company known for its weight loss drug Wegovy, announced it will cut 9,000 jobs due to rising competition, primarily from U.S. company Eli Lilly. The company aims to save 8 billion Danish crowns annually through restructuring. Novo Nordisk has also experienced a decline in market value and plans to focus more on research and development.
Key Facts
- Novo Nordisk will cut 9,000 jobs, which is the largest layoff in Denmark's history.
- The job cuts are expected to save the company approximately $1.25 billion per year.
- Novo Nordisk's market value has dropped from $650 billion to about $181 billion.
- The company has issued three profit warnings this year and may issue a fourth.
- Novo Nordisk plans to invest its savings into research and development.
- The company is facing increased competition from Eli Lilly's drug, Zepbound.
- Last month, Novo announced a hiring freeze on non-essential roles.
- About 11.5% of the company's global workforce will be affected by the layoffs.
