Novo Tries To Catch Up With Lilly By Slashing 11% Of Workforce

Core Viewpoint - Novo Nordisk A/S is reducing its workforce by 11% to enhance competitiveness in the obesity market against Eli Lilly & Co, indicating a shift towards a more performance-driven culture under new CEO Maziar Mike Doustdar [1][2] Group 1: Workforce Reduction - The company plans to cut 11% of its workforce, primarily affecting back-office jobs and support staff, aiming to streamline operations by reducing "middle layers" of management [1][4] - This marks a significant increase in layoffs compared to the last major reduction in September 2016, when only about 2.4% of the workforce was let go [5] Group 2: Market Position and Competition - Investors reacted positively to the announcement despite a reduction in profit forecasts, with shares rising by as much as 4.4% [3] - Novo's stock has seen a nearly 60% decline over the past year due to challenges from experimental drugs and competition from Eli Lilly, which has been more efficient in generating revenue with fewer employees [3][6] Group 3: Strategic Changes - The new CEO emphasizes a "performance culture," which includes a return to office work and faster decision-making, contrasting with the previous management's approach focused on employee well-being [2] - The company is now focusing on a pill version of Wegovy for future growth after setbacks with an experimental drug, CagriSema [7]