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Novo Nordisk will soon require its staff to work in the office full-time after it cut thousands of jobs.
The Ozempic maker said it intends to implement a “new global standard” for office-based employees where they will be required to work from the office five days a week.
The Danish pharma company’s change in office culture comes just a day after it cut about 11% of its total workforce . Its new policy will go into effect starting Jan.1, it said.
“This is designed to foster a stronger sense of belonging, strengthen relationships, enhance collaboration and accelerate decision-making processes,” Novo Nordisk said in a statement to Quartz.
It said that while it aims to “foster a vibrant in-office culture” the company still recognizes the “importance of flexibility,” adding that managers and employees can make individual agreements so that “both personal and business needs are met.”
Novo Nordisk did not elaborate on what the framework of these agreements would be or if they would have any restrictions.
The pharma company has offices around the world. Its U.S.-based headquarters is in New Jersey.
The Ozempic producer is facing increasing competition from Eli Lilly, the U.S. firm behind Mounjaro, and a new wave of cheaper, compounded alternatives. By cutting around 9,000 positions on Wednesday — more than half of which are based in Denmark — the company anticipates annualized savings of roughly $1.25 billion by the end of 2026, with the funds earmarked for reinvestment in its diabetes and obesity therapy areas.
“Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well,” Mike Doustdar, Novo Nordisk president and CEO, said in the announcement. This means accelerating a “performance-based culture” and prioritizing investment “where it will have the most impact — behind our leading therapy areas,” he added. The savings will be redirected to growth opportunities in diabetes and obesity, including both commercial execution initiatives and R&D programs, the company said.
Bloomberg first reported the company’s change in office policy on Thursday.
Novo Nordisk’s stock is up about 0.05% at 10:15 a.m. ET Thursday.
— Niamh Rowe contributed to this article.
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