Mass Layoffs Hit Novo Nordisk’s Danish Operations
Novo Nordisk is accelerating job cuts in its home country of Denmark, with approximately 5,000 positions being eliminated across manufacturing, research, IT, and quality control departments, according to reports from Reuters. The rapid pace of layoffs has led affected employees to form an unofficial support community dubbed “Club 5,000,” where former colleagues share job tips and organize social gatherings.
The cuts are part of a broader global restructuring that will eliminate 9,000 positions from Novo Nordisk’s nearly 79,000-strong workforce worldwide. Sources indicate that roughly 34,000 of these employees are based in Denmark, making the current layoff program particularly significant for the local economy and the company’s operations.
Club 5,000 Forms as Layoffs Accelerate
Since the layoffs were announced by new CEO Mike Doustdar on September 10, hundreds of affected employees have joined online communities using the Club 5,000 hashtag. According to the report, Romel Amineh, recently laid off from his IT role supporting clinical trials, created a LinkedIn group that reportedly gained over 1,000 members within days.
“People have a connection through the culture that has been there at Novo Nordisk,” Amineh told Reuters. The informal network has become a hub for everything from professional networking to organizing group walks and drinks, sources indicate.
Aggressive Timeline Targets “Potato Week” Completion
Three Novo sources and two others briefed by employees revealed that the company aims to complete the bulk of layoffs by “potato week” – a reference to Denmark’s autumn school holiday occurring this week. The timeline was reportedly presented to staff during a town hall meeting last month, though sources suggest some dismissals could extend into November.
The term “potato week” refers to the traditional autumn break where Danish families historically harvested potatoes. The accelerated timeline underscores the urgency behind Novo Nordisk’s restructuring efforts, analysts suggest.
Competitive Pressure Drives Restructuring
The job cuts come as Novo Nordisk faces intensified competition in the global obesity drug market, particularly from Eli Lilly’s Mounjaro. Despite the success of Wegovy, launched in 2021, which briefly made Novo Europe’s most valuable company, growing competition has slowed the drug’s growth and caused the company’s share price to slump more than 60% from its peak.
“The speed of the layoffs points to Novo trying to protect profitability,” Gareth Powell, head of healthcare at London-based Polar Capital, told Reuters. New CEO Mike Doustdar reportedly stated when unveiling the plan that “the faster the better” within legal and ethical limits.
Operational Concerns Emerge
The scale and pace of the cuts have raised concerns among current and former employees about potential strain on operations. Sources familiar with the situation indicated that cuts have affected teams in sustainability, finance, business support, and blue-collar positions at key production facilities in Kalundborg and Hillerod.
One Hillerod worker reported major cuts in packaging teams preparing new lines for Wegovy and diabetes drug Ozempic, both scheduled to ramp up production in 2026. Another laid-off staffer familiar with both Hillerod and Kalundborg operations warned that reductions in quality assurance, warehouse, and line operations could strain capacity during upcoming expansions.
“We’re not making bicycles. This is highly regulated and requires many quality assurance staff for new production,” the person stated, while acknowledging that management may have a reorganization plan to offset lower staff numbers.
Generous Severance Amid Organizational Shift
Despite concerns about the selection process being described as opaque by some affected employees, multiple sources confirmed that severance packages have been generous. The Danish Society of Engineers, representing many Novo production staff, reportedly told Reuters that nearly 500 members had joined its meetings since the layoffs were announced and echoed the generous severance assessment.
A view of Novo Nordisk’s office in Bagsvaerd, outside Copenhagen, shows the company’s significant presence in Denmark. The company stated that “the process takes time, and our highest priority is to support our employees,” but declined to comment further on specific findings by Reuters.
As the restructuring continues, some employees see broader implications. A sustainability manager posted on LinkedIn that the layoffs marked a strategic shift and tougher approach, stating: “It’s a new corporate ethos.”
This coverage is based on reporting by Maggie Fick in London and Soren Jeppesen and Jacob Gronholt-Pedersen in Copenhagen, with additional reporting by Stine Jacobsen. Editing was provided by Adam Jourdan and Mark Potter. Reuters content licensing information is available through their official platform.
This article aggregates information from publicly available sources. All trademarks and copyrights belong to their respective owners.
