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Novo Nordisk cuts 1300 jobs in the midst of Trump's pricing pressures and depreciation of US dollar

Published on 02/11/18 at 10:51am

Danish multinational Novo Nordisk has said that they will have cut 1,300 employees by the end of 2018. The decision has come partly in response to the Trump administration’s efforts to reduce the price of drugs, according to Novo Nordisk CEO Lars Fruergaard Jørgensen.  

The Novo Nordisk chief commented: “This is part of preparing for that [the Trump administration’s pricing plan] but it is as much about investing in the business, so we don’t have any plans about doing any new measures for 2019.”

The company expects to lose an estimated 1-2% of sales revenue in 2019 due to Trump’s pricing legislation.

However the insulin maker’s cull has come after the company’s third quarter financial results revealed profits had fallen by 8%. The company suggested that loss of profit reflects “the significant depreciation of the US dollar and related currencies versus the Danish krone.”

Novo Nordisk had previously announced a restructuring of its research and development unit which would see the company cut 650 jobs.

“It's important to say that the majority of these job cuts have already been done, so we are simply explaining today that when we get to the end of the year we'll have reduced our workforce by 1300 people,” Jørgensen explained.

Louis Goss

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