LONDON/SAN FRANCISCO, Oct 15 (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.
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 ( LLY ).
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.