The Danish biotech giant Novo Nordisk has announced plans to lay off 500 employees in Denmark and 1,000 jobs in total in the wake of some disappointing interim results in August.
The company said the layoffs were among several actions that will be taken to reduce operating costs ahead of a challenging 2017 – particularly in its significant US market.
“We deeply regret that good colleagues stand to lose their jobs, and it has been a difficult decision to make,” said Novo Nordisk CEO Lars Rebien Sørensen.
“However, we have concluded that it is needed in order for us to have a sustainable balance between income and costs. In the current situation, we have to prioritise investments in key product launches that will bring innovation to patients and drive our future growth.”
READ MORE: New insulin product reflects well on Novo Nordisk financial results
Streamlining process
According to Novo Nordisk, the majority of the employees being let go are employed at the company’s research and development department, its headquarters, and its global commercial organisation.
The impacted employees will be advised of their job loss over the next two months.
Sørensen himself will also be leaving the company following his announcement earlier this month that he would be stepping down at the end of the year.
