Another wave of layoffs is hitting New Jersey’s pharmaceutical sector with Novo disclosing planned workforce reductions.
The Danish drugmaker said it expects to cut 108 positions by Dec. 31 at its U.S. headquarters in Plainsboro, according to a filing with the New Jersey Department of Labor & Workforce Development.
A spokesperson for the company told NJBIZ, “Like any business, Novo regularly evaluates its organization to ensure we are positioned to meet evolving market dynamics and patient needs.”
“Our focus remains on serving patients, supporting healthcare professionals, and driving sustainable growth in the U.S. We are committed to treating everyone with respect,” they said. “To protect employee privacy, we will not comment on individual situations.”
The downsizing comes a year after Novo launched a restructuring campaign aimed at generating about $1.3 billion in savings annually by the end of 2026. At the time, the company said it anticipated trimming 9,000 jobs from its 78,400 headcount.
During the company’s second quarter earnings call in August, executives said they are on track to deliver the targeted annualized savings.
At the Novo’s Sept. 21 capital markets day in London, CEO Mike Doustdar disclosed that staff departures have reached 13,000. The figure includes the initial 9,000 layoffs and 4,000 subsequent exits, according to Fierce Pharma. Novo’s headcount now stands at about 67,000.
Fueling the future
BioSpace reported the additional departures “were not necessarily layoffs.” According to that publication, they included jobs left unfilled as a result of normal attrition, retirements, voluntary departures, decisions not to backfill roles and other changes in hiring decisions.
Within New Jersey, Novo let go 263 workers last December.
Doustdar categorized the companywide reductions as “not easy” but ‘necessary.”
“They were incredibly important, as we’re using the funds coming through this exercise to fuel for the future, fuel the R&D organization, as well as, of course, make ourselves more competitive,” he said.
Though Novo’s portfolio includes popular GLP-1 treatments, like type 2 diabetes drug Ozempic and weight management therapy Wegovy, the company has struggled to maintain market share amid increased competition from rival Eli Lilly. Novo is also facing the 2032 patent expiration of semaglutide, the key ingredient in Ozempic and Wegovy.
In a bid to reassure investors, Novo recently pledged to launch at least five more blockbuster drugs by 2030 and deliver more that $23 billion in pipeline sales in 2035, according to Reuters.
Novo also just unveiled a rebrand designed to make the company more recognizable and consistent. Along with an updated version of its Apis bull logo and new slogan, “Lasting Health Starts Now,” the company shortened its name from Novo Nordisk to Novo.
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