Novo Nordisk intends to reduce its 42,300-person workforce by approximately 1,000 employees as part of its plan to reduce operating costs. The company said in a statement that it is facing a “challenging competitive” environment in 2017, especially in the US market.

The reductions are expected to affect research and development units and headquarter staff functions as well as positions in the global commercial organization. Around 500 of the layoffs are expected to be in Denmark. The majority of layoffs are expected to be communicated to affected employees over the next two months, pending negotiations as per local legal labor market requirements.

“We deeply regret that good colleagues stand to lose their jobs, and it has been a difficult decision to make,” said president and chief executive office, Lars Rebien Sørensen, in a company press release issued on September 29, 2016.

“However, we have concluded that it is needed in order for us to have a sustainable balance between income and costs. In the current situation, we have to prioritize investments in key product launches that will bring innovation to patients and drive our future growth,” he added.

Source: Novo Nordisk