A review of LinkedIn posts by Reuters has revealed dozens of employees have been laid off at the biggest U.S. plant in the manufacture of its blockbuster obesity and diabetes medications, Wegovy-maker Novo Nordisk, a mark of where it is making cuts in a sweeping restructuring under its new CEO, Mike Doustdar.
The analysis of 73 posts and profiles reveals that the previously undocumented reductions involved employees in manufacturing positions, including quality control and production line technicians, at the large Clayton, North Carolina, plant of Novo and other areas in the state.
Even the minor layoffs, which are just one aspect of a planned 9,000 job cuts worldwide, highlight how the Novo is also cutting back on front-line production in the best market of Wegovy as it tries to hone its focus, cut down on costs, and recover lost ground in the cut-throat competition with rival Eli Lilly.
The reductions, after previous ones targeting the obesity education team in the U.S., have been witnessed when the administration of President Donald Trump pushes pharmaceutical firms into increasing drug production in the U.S. and creating more domestic employment.
The Danish pharmaceutical company became the most valuable listed company in Europe last year on unprecedented demand for weight-loss pills, only to plunge dramatically in market share once the sales growth began to decelerate.
Now it is attempting to reverse its fortunes and cut down on its costs and employees who have swelled to excess as it rode the Wegovy boom.
A spokesperson of A Novo responded to a request by Reuters to provide additional information beyond the announcement of layoffs across the world in the previous month. The spokesperson said, “This process takes time, and our highest priority is to support our employees.”
The broader reduction announced contributed to the increase in the share of Novo; however, the company did not comment much on it. It announced an estimated reduction of 5,000 jobs in its home country in Denmark.
The posts have exposed a strategic communications manager and an HR assistant, technical manufacturing workers, and project coordinators who are the victims of the North Carolina cuts.
Out of the total, 47 had posted directly that they were seeking employment or that they had been laid off.
The Clayton plant by Novo produces semaglutide, the active ingredient in diabetes medications Ozempic and Wegovy.
It also performs manufacturing operations such as filling, finishing, and packaging of injections. It plays a pivotal role in the production of the new version of Wegovy when it becomes available.
In the same month, CEO Doustdar announced a continued growth of $4.1 billion at the North Carolina facility that would have 2,500 employees in 2024 and would likely increase to 1,000 more.
Reuters was unable to find out the number of layoffs or why they occurred in Clayton, three weeks after Doustdar announced the restructuring on a larger scale.
Reuters tried to reach out to 30 of the Novo workers who were posting on LinkedIn that they had been laid off.
One of them responded that they cannot talk to the media because they have a non-disclosure agreement.
