Novo Nordisk, the manufacturer of Wegovy and Ozempic, has announced plans to reduce its workforce by 9,000 positions, which constitutes approximately 11% of its total staff. This decision comes shortly after the company cautioned that its profits would decline due to the emergence of competing weight-loss drugs. The job cuts represent a significant move by newly appointed Chief Executive Mike Doustdar as Novo Nordisk adapts to the evolving landscape of the weight-loss market, which has experienced increasing demand, particularly following COVID-19 lockdowns.
Doustdar indicated that the market for obesity treatments is becoming more competitive and consumer-driven, necessitating adjustments within the company to remain viable. Novo Nordisk faces heightened competition from companies like Eli Lilly, which produces Mounjaro. Recently, Eli Lilly announced a price increase for Mounjaro in the UK, causing some patients to express concerns about access to the medication as pharmacies began stockpiling before the increase took effect. Mounjaro’s price is set to rise by up to 170%, elevating the cost of a month’s supply at the highest dosage from £122 to £330.
In July, Novo Nordisk warned that its anticipated growth in full-year sales and profits would not materialize as quickly as previously expected. The company has since set a goal to cut costs by 8 billion Danish kroner (approximately £927 million) by the end of the following year. While Doustdar acknowledged the difficulty of layoffs, he argued that the decision is necessary for Novo Nordisk’s long-term success. The company will begin discussions with affected employees in the following months, adhering to local labor regulations.
Source: https://www.bbc.com/news/articles/c8d79pez6g2o?at_medium=RSS&at_campaign=rss