Novo Nordisk (NYSE:NVO) revealed on Wednesday plans to reduce its global workforce by 9,000 positions as part of a broader initiative to streamline operations and manage costs. The Danish pharmaceutical company, known for its weight-loss drug Wegovy and diabetes treatment Ozempic, said the cuts represent roughly 11.5% of its total 78,400 employees, with approximately 5,000 roles affected in Denmark.
The restructuring is expected to deliver annual cost savings of 8 billion Danish crowns ($1.27 billion) by 2026, although the company anticipates one-off charges of 9 billion crowns in the third quarter. Around 1 billion crowns in savings are projected to be realized in the fourth quarter.
“These changes will allow Novo Nordisk to simplify the organization and sharpen our focus on diabetes and obesity treatments, our core areas of business,” said Chief Executive Mike Doustdar, who assumed leadership of the company last month.
The company plans to reinvest the savings into growth initiatives within its diabetes and obesity portfolios. Novo Nordisk also lowered its full-year operating profit growth guidance to 4-10% from the previous 10-16%, reflecting the costs associated with the restructuring.
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