"In a press release, the pharmaceutical giant announced that it would soon let go of 11 percent of its workforce, totaling about 9,000 of its 78,400 employees around the world. About 5,000 of those cuts, Novo explained, would take place in Denmark as it embarks on a "company-wide transformation" to save about $1.3 billion by the end of 2026. Less than a month ago, Novo admitted to Reuters that it had implemented a "hiring freeze in non-business critical areas.""
"The two events precipitated Novo stock plummeting 21 percent, to just below $47, at the beginning of August; it has since recouped to $54.18, but that's still way down from its high this time last year at more than $136 per share, or its all-time high above $142 in June 2024. The fine print behind this layoff announcement, as the New York Times and other outlets note, revolves around the company's shrinking share of the market for glucagon-like peptide-1 (GLP-1) receptor/agonist drugs."
Novo Nordisk will reduce its global workforce by about 11 percent, roughly 9,000 of 78,400 employees, with around 5,000 cuts in Denmark. The company plans a company-wide transformation to save approximately $1.3 billion by the end of 2026 and implemented a hiring freeze in non-business-critical areas. A profit warning and the appointment of new CEO Maziar Mike Doustdar preceded significant stock volatility, including a 21 percent drop in early August and a partial recovery. The layoffs are linked to a shrinking share of the GLP-1 receptor/agonist drug market amid growing competition from rivals such as Eli Lilly.
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