Novo Nordisk halts new employee recruitment as part of cost-cutting measures
In a surprising move, Novo Nordisk, the Danish pharmaceutical giant, has announced a hiring freeze and signaled potential job cuts under its new CEO, Maziar Mike Doustdar. The announcement comes as the company faces increasing competition in the obesity market, particularly from Eli Lilly & Co.
According to reports, only eight positions are open in Novo Nordisk's home market of Denmark. This is a stark contrast to the significant growth the company's workforce has experienced in recent years, exceeding 78,000 people.
Doustdar, who took over as CEO earlier this month, has promised a revamp at the company and mentioned job cuts as part of the promised changes. He has also stated that Novo needs to be more disciplined with spending and intends to review the company's cost base.
The hiring freeze applies across all markets and departments and excludes business-critical roles. As of Wednesday, Novo Nordisk's global job postings on its website were fewer than 400, with most positions in China and the U.S.
The company has been expanding production of Ozempic and Wegovy, but its US obesity market lead is being challenged by Eli Lilly & Co. In fact, Eli Lilly's weight-loss franchise is projected to surpass Novo's market share this year, and by 2030, Eli Lilly may hold more than half of the $100 billion global obesity market, according to Bloomberg Intelligence analyst Michael Shah.
This news comes after Novo Nordisk ousted its longtime CEO in the second quarter of the year. The company has not yet provided specific details about the number of jobs that may be affected by the hiring freeze and potential job cuts, but it is clear that changes are on the horizon for the Danish pharmaceutical giant.
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