Novo Nordisk Fires New Hires Days Before They Start Amid Cost-Cutting Measures.

Novo Nordisk has canceled contracts for new hires just days before they were set to start, the latest cost-cutting measure after the company lowered its growth forecast twice due to competition from US rival Eli Lilly. The Danish drugmaker implemented a global hiring freeze and cut some employee bonuses, with new CEO Maziar Mike Doustdar trying to reboot the company. New hires will receive a month's pay and outplacement services.

Novo Nordisk A/S has taken further cost-cutting measures by canceling contracts for new hires just days before they were set to start, according to recent reports. The Danish pharmaceutical giant has implemented a global hiring freeze and reduced employee bonuses as part of its broader strategy to stabilize cash flow and navigate market challenges [1].

The latest move comes after the company lowered its growth forecast twice due to intense competition from US rival Eli Lilly & Co., particularly in the GLP-1 market. Novo Nordisk's new CEO, Maziar Mike Doustdar, is under pressure to regain market share and improve the company's financial position. The cancellation of new hires' contracts is the latest in a series of cost-cutting measures aimed at streamlining operations and maintaining financial stability.

New recruits who had their contracts canceled will receive a month's pay and outplacement services as compensation. The company has stated that the hiring freeze and bonus cuts are necessary to ensure the company's long-term viability, despite the immediate financial benefits of these measures [2].

The Danish drugmaker's struggles have also impacted the country's economic outlook. Denmark recently slashed its 2025 growth forecast to 1.4% from 3% due to weaker prospects for Novo Nordisk and the impact of US trade tariffs [3]. The country's economy ministry noted that the pharmaceutical industry is increasingly challenged by competition in the markets for weight loss products, which has dampened growth expectations.

Analysts caution that while Novo Nordisk's cost-restraint measures have stabilized cash flow, the cancellation of critical R&D projects and leadership transitions introduce execution risks. The company's ability to balance fiscal discipline with innovation will be crucial for its long-term success. For now, the market remains divided, but the stakes have never been higher.

References:
[1] https://www.ainvest.com/news/novo-nordisk-implements-cost-cutting-measures-analysts-predict-mixed-outlook-2508/
[2] https://seekingalpha.com/news/4490401-denmark-cuts-growth-outlook-amid-novo-nordisk-woes
[3] https://www.bloomberg.com/news/articles/2025-08-29/novo-fires-new-hires-just-days-before-they-re-set-to-start