By Maggie Fick and Dan Levine LONDON/SAN FRANCISCO (Reuters) -Drugmaker Novo Nordisk has begun a round of layoffs in its most important market, the United States, with affected staff set to be
Novo Nordisk begins round of layoffs in United States,
Overview of Novo Nordisk Layoffs
By Maggie Fick and Dan Levine
Departments Affected by Job Cuts
LONDON/SAN FRANCISCO (Reuters) -Drugmaker Novo Nordisk has begun a round of layoffs in its most important market, the United States, with affected staff set to be notified between this week and next, according to an email and two sources familiar with the matter.
Impact on Company Strategy
The time-frame for the layoffs has not previously been reported. The move comes as the Danish company behind popular weight-loss drug Wegovy looks to cut jobs globally and reduce costs in a battle with U.S. rival Eli Lilly.
Market Reaction and Share Performance
U.S. layoffs began on Tuesday and will continue until late next week, according to a schedule in the email. They come after an acceleration of job cuts in Novo's home market, Denmark, where it plans to eliminate 5,000 positions.
CUTS ACROSS MANY TEAMS FROM REGULATION TO SALES
Departments expected to be informed of cuts include human resources, clinical development, rare diseases, medical and regulatory, legal, ethics and compliance, marketing and sales, finance, public affairs and others, the schedule showed.
Reuters was unable to confirm how many people would be affected. Novo is looking to shed 9,000 roles globally in a restructuring drive under new CEO Mike Doustdar, who took office in August.
Novo did not immediately respond to a request for comment, but has said previously that the global process would take time and its "highest priority is to support our employees".
The sources asked not to be named in order to share confidential company information.
The layoffs come as Doustdar tries to restore investor confidence with what he calls a tighter focus on commercial execution and on the obesity and diabetes therapeutic areas.
Doustdar took the helm after a sliding share price and slowing Wegovy sales growth led to the ouster of long-time CEO Lars Fruergaard Jorgensen.
Novo's shares are up around 6% since the restructuring was announced on September 10.
(Reporting by Maggie Fick in London and Dan Levine in San Franscisco. Editing by Mark Potter)
