By Priya Raghuvanshi

Copyright timesnownews

Novo Nordisk, the pharmaceutical giant behind the blockbuster weight-loss drug Wegovy, is set to cut 9,000 jobs, approximately 11.5 per cent of its global workforce, in a major restructuring aimed at saving around $1.3 billion annually, according to a Reuters report. The move comes as the company faces mounting pressure from US competitor Eli Lilly and slowing growth in key markets. Once Europe’s most valuable publicly traded company, Novo Nordisk is at a crossroads. Sales of Wegovy and the diabetes treatment Ozempic have decelerated, especially in the competitive US market, as per the report. The company plans to simplify its structure, speed up decision-making, and redirect resources toward its most promising areas of growth, according to a statement released Wednesday, states the report. Performance-Based Culture CEO Mike Doustdar, who took the reins just last month, stressed the need for change as per the report. “Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well,” Doustdar said. He added, “This means instilling an increased performance-based culture, deploying our resources ever more effectively, and prioritising investment where it will have the most impact – behind our leading therapy areas,” states the report. Financial Impact And Job Cuts Concentrated In Denmark The company revealed it will incur one-off restructuring charges totalling 9 billion Danish crowns in Q3, including impairments, but expects to start realising savings of 1 billion crowns in Q4. Overall, Novo anticipates annual savings of around 8 billion crowns ($1.3 billion), states the report. Of the 9,000 planned job cuts, about 5,000 will be in Denmark, the company’s home base. This reduction follows a global hiring freeze introduced last month on non-critical positions, claims the report. Novo’s current workforce stands at roughly 78,400 employees worldwide. Slower Growth Outlook And Market Valuation Decline Due to restructuring costs and competitive challenges, Novo has revised its operating profit growth forecast for the year down to 4-10 per cent, from an earlier 10-16 per cent. The company’s growth is also hindered by the rise of generic versions of Wegovy’s active ingredients amid supply shortages. The announcement follows a dramatic $70 billion market value wipeout in July after Novo issued a profit warning and appointed Doustdar as CEO, states the report. Shares have dropped nearly 46 per cent since the start of the year, shrinking the company’s market cap to about $181 billion, a far cry from its $650 billion peak last year.