Novo trims headcount to 67,000 as CEO redirects funds to research
Novo's CEO disclosed that the company has reduced its workforce by 13,000 over the past year, bringing total employment to 67,000. The cuts include layoffs, attrition, retirements, and unfilled positions, with savings earmarked for research and development. Shares fell nearly 8% after the announcement as investors remained skeptical.
The reduction brings Novo’s headcount from a 2025 peak of over 78,000 to 67,000, with the latest 4,000 departures attributed to attrition, retirements, unfilled roles, and voluntary exits rather than outright layoffs. The earlier 9,000 cuts stemmed from a September 2025 restructuring. CEO Doustdar, who took office in July 2025, framed the savings as essential for boosting R&D competitiveness, though he acknowledged the difficulty of the decisions. The company declined to specify where the newest reductions occurred.
This workforce contraction could signal a broader recalibration among drugmakers that over-expanded during the GLP-1 boom. Patients may see delayed innovation if R&D funds are not deployed effectively, while employees face heightened job insecurity across the sector. Investors’ skepticism suggests that cost-cutting alone may not restore confidence, potentially affecting Novo’s ability to attract talent or partnerships. Ultimately, the impact hinges on whether redirected research yields new treatments that justify the sacrifices.