Following a layoff of 9,000 employees globally, Novo Nordisk has announced a new return-to-office (RTO) mandate. The pharmaceutical company, known for its diabetes and weight-loss dr-gs like Ozempic and Wegovy, is requiring all office-based staff to work five days a week in the office. The new policy is set to take effect on January 1st.
The layoffs, which amount to about 11% of the company's workforce, are part of a restructuring plan by the new CEO, Mike Doustdar, to streamline operations, reduce complexity, and save an estimated $1.25 billion annually by the end of 2026. The company plans to reinvest these savings into its core areas of diabetes and obesity treatments. The job cuts, which include 5,000 positions in Denmark, are a response to slowing sales growth and increasing competition, particularly from rival dr-gmaker Eli Lilly.
The RTO mandate is being implemented to "foster a stronger sense of belonging, strengthen relationships, enhance collaboration, and accelerate decision-making processes." According to reports, the company did not have a universal work-from-home policy before, and rules varied by country and department. While the new mandate is a full-time return, the company stated that individual agreements between managers and employees are still possible to balance both personal and business needs.
The decision has been met with criticism from some employee representatives, who were "surprised" by the change, arguing that remote work and a vibrant office culture are not mutually exclusive. This move by Novo Nordisk aligns with a broader trend of companies reversing remote work policies, with some experts suggesting that RTO mandates are being used as a way to encourage employees to quit, thereby reducing headcount without having to pay severance. However, the company's new CEO has emphasized the need for a shift in mindset to become faster and more agile in a competitive market.