Novo Nordisk announces as many as 400 job cuts in research

Denmark-based Novo Nordisk, world leader in diabetes treatments, today has announced a plan to dismiss 400 research employees. Cuts will mainly affect employees in Denmark and China. The company will use the saved resources to increase its innovation capacity: indeed the head of research, CSO Mads Krogsgaard Thomsen, has announced that the R&D budget will increase in 2019 over the 2018 levels, despite the dismissal of technicians. The company will hire specialists in areas such as computational biology and stem cells, as well as the new disease areas into which it is expanding, such as cardiovascular disease, obesity and NASH.

Novo’s shares have not positively reacted to the news, declining 0.6% (Copenhagen).

Importantly, the company in 2016 developed a plan to cut costs, which included 1,000 dismissals all over the world.

(Source Novo Nordisk)