"The maker of the weight-loss and diabetes drugs Ozempic and Wegovy is to cut 9,000 jobs as it issued a profit warning amid increased competition from the US rival Eli Lilly. Novo Nordisk's decision to cut 11% of its global workforce comes as sales of its diabetes drugs including Ozempic have slowed sharply as it faces fierce competition from Eli Lilly's Mounjaro jabs and the threat of US tariffs."
"The Danish company's market value has slumped by more than 60% over the past year and it has estimated that the cuts programme will save it 8bn kroner (930m) a year by 2026. Novo Nordisk said the job cuts will cost 8bn kroner in restructuring charges, and cut its operating profit growth forecast for this year from 10-16% to 4-10%."
"It is always difficult to see talented and valued colleagues go, but we are convinced that this is the right thing to do for the long-term success of Novo Nordisk, said Mike Doustdar, who took over as the chief executive in July. We need a shift in our mindset and approach so that we can be faster and more agile."
Novo Nordisk will cut 9,000 jobs, about 11% of its global workforce, with 5,000 cuts in Denmark. Sales of diabetes and obesity drugs including Ozempic and Wegovy have slowed sharply amid competition from Eli Lilly's Mounjaro and potential US tariffs. The company's market value has fallen more than 60% over the past year. The cuts programme is expected to save 8bn kroner annually by 2026 but will incur 8bn kroner in restructuring charges. The company reduced its operating profit growth forecast for the year from 10–16% to 4–10%. Disappointing clinical results for CagriSema contributed to strategic changes.
Read at www.theguardian.com
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