The world’s largest insulin producer Novo Nordisk has said it will cut 1,000 jobs over the next two months in a move to reduce operating costs.
President and chief executive Rebien Sørensen said: “We deeply regret that good colleagues stand to lose their jobs, and it has been a difficult decision to make.”
The lay offs are expected to hit the firm’s research and development units, its headquarters staff and its global commercial organisation.
Novo, which employs 42,300 around the world, said that 500 of the planned job losses would take place in its home of Denmark.
The reductions come after increasing pressure in the diabetes market, with downward pricing and intensifying competition for market share affecting sales – particularly within the US.
Sørensen explained that the cuts are “needed in order for us to have a sustainable balance between income and costs”.
He added: “In the current situation, we have to prioritise investments in key product launches that will bring innovation to patients and drive our future growth.”
The company said in a statement that the workforce reduction will not change its financial outlook for the year, with Novo’s half-year financial statement in early August reporting building momentum for its new basal insulin product Tresiba (insulin degludec).
Sales of the drug rose 161% to $216m (DKK 1.45bn) in the first six months of 2016, but it still has some way to go to compete with the $3.1bn (€2.86bn) brought in by Sanofi’s established blockbuster Lantus (insulin glargine) during the same period.