Novo trims workforce by 13,000 to boost R&D spending
Novo's workforce has dropped by about 13,000 over the past year, leaving the company with 67,000 employees. The reduction includes 9,000 layoffs from a restructuring and 4,000 departures due to attrition and other factors. CEO Maziar Mike Doustdar said the changes are intended to free up funds for research and development.
Novo's workforce reduction combines 9,000 positions cut through a restructuring announced in September 2025 with roughly 4,000 additional departures attributed to attrition, retirements, voluntary exits, and unfilled roles. The restructuring targets $1.25 billion in annualized savings through 2026, with CEO Maziar Mike Doustdar directing freed-up capital toward research and development.
Similar cost-cutting appears across the sector. Bristol Myers Squibb plans 265 terminations at its Princeton, New Jersey site spanning December through May 2027, extending a savings push first announced in 2024. Johnson & Johnson is cutting 87 employees in New Brunswick, continuing reductions tied to its Orthopedics separation and efforts to address stranded costs while improving operating margins.
These workforce reductions could affect thousands of employees and their families, especially in regions like New Jersey where multiple pharmaceutical firms are cutting simultaneously. However, redirected funds toward R&D may accelerate drug development, potentially benefiting patients through new therapies. Communities dependent on pharmaceutical employment could face economic strain, while the industry's efficiency focus may reshape career prospects for skilled workers navigating an increasingly consolidated sector.