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Novo Nordisk to ax 1,000 jobs in cost-cutting drive

Novo Nordisk to ax 1,000 jobs in cost-cutting drive

Danish multinational pharmaceutical company Novo Nordisk is the world’s largest insulin maker. The company is going to ax 1,000 jobs as a part of a plan to reduce costs. According to the prognosis, forthcoming 2017 year promises the challenging environment, especially in the large U.S. market.

Novo Nordisk in its official statement issued on Thursday explained the reasons for cutting the jobs. At least 1,000 jobs will be ax in cost-cutting drive, said the Danish farmaceutical concern. As a matter of fact, the headcount reduction and associated costs would not change the financial outlook for 2016, said the company in its recent statement.

“We have concluded that it is needed in order for us to have a sustainable balance between income and costs,”

Chief Executive Lars Rebien Sorensen added.

Novo Nordisk and changing of CEO

Novo Nordisk’s revenue from the United States reduced, primarily due to the challenging U.S. market, knocking 8 percent of its Copenhagen-listed shares on the day. The planned job reductions come at a time of significant change at Novo, next year the company’ll get a new CEO.

The changes in the top of the Novo Nordisk announced in early September, that long-serving CEO Sorensen is stepping down in next January. Mr. Lars Fruergaard Jorgensen will be the next CEO, now Jorgensen is Executive Vice-president and Head of corporate development.