Massive layoff round will happen in 2H 2018

Quote

anonymous

Guest
Executive Management in Denmark has just started a "strategic review" that will lead to massive layoffs. My source over in Bagsvaerd has heard that the target is to fire 2-3,000 people worldwide "sometime in second half of the year". No formal target has yet been set for NNI but a guesstimate is that massive layoffs of at least 500 people will take place in the field force and back office functions.

The reason for the layoffs that come only two years after the last round is the expected shortfall next year because of increased rebates to Medicare in 2019 to the tune of 1-2% point impact on sales and operating profit.
 








I may be naive but didn't the company have a Triple Bottom Line commitment? I believe it's even stated somewhere in the bylaws. I can see that if this goes through there will be massive focus on delivering on the financial line, but how about the two other, especially the social perspective?

Can anyone tell me how firing 3,000 people is "social responsibility"? It beats me!
 




WTF? I need to start updating my resume if this is true. I thought the new CEO was more of a long-term guy than Lars Rabien who was ruthless and only focused on short term profit; well, I may be proven wrong :-(
 








anonymous said:
I may be naive but didn't the company have a Triple Bottom Line commitment? I believe it's even stated somewhere in the bylaws. I can see that if this goes through there will be massive focus on delivering on the financial line, but how about the two other, especially the social perspective?

Can anyone tell me how firing 3,000 people is "social responsibility"? It beats me!
Click to expand...

Get real: there is only one bottom line in the company. The Foundation may be a majority owner but they don't care about social responsibility. Lars Sorensen was just made chairman of the holding company and he is a true hard hitter :-(
 




Very sad if this is true; been with Novo many years and been really proud of the company, until the layoffs only two years ago. This could be the end of the road and whatever is left of a unique spirit. Just another pharma company
 




anonymous said:
Executive Management in Denmark has just started a "strategic review" that will lead to massive layoffs. My source over in Bagsvaerd has heard that the target is to fire 2-3,000 people worldwide "sometime in second half of the year". No formal target has yet been set for NNI but a guesstimate is that massive layoffs of at least 500 people will take place in the field force and back office functions.

The reason for the layoffs that come only two years after the last round is the expected shortfall next year because of increased rebates to Medicare in 2019 to the tune of 1-2% point impact on sales and operating profit.
Click to expand...

Roger that: a strategic review is currently ongoing, involving 8-10 workstreams; in order to reach 3% growth in operating profit next year significant chunks of the total cost base need to be axed. Expect massive layoffs to be announced in August and completed in October so all severance expenses can be booked this financial year.
 




I hope you guys are wrong. I was here during the last layoffs in the fall of 2016 and it was a nightmare: dragged on forever, no one did any real work and so many good colleagues were let go. Morale suffered for more than a year. Can't take another, and perhaps even bigger, round. This is what happened at BMS, my former company, and it was awful,

PLEASE let this be a hoax!
 




Sources are in all out panic as this meeting progresses. This is no surprise to any of us that have been paying attention. We have been just another pharma company for years now and we are simply doing what most have accomplished over the last few years. Cost cutting! Eliminating jobs is the best way to annihilate overhead quickly and we are now all going to be on eggshells for the next few months. Enjoy the summer!
 








anonymous said:
Executive Management in Denmark has just started a "strategic review" that will lead to massive layoffs. My source over in Bagsvaerd has heard that the target is to fire 2-3,000 people worldwide "sometime in second half of the year". No formal target has yet been set for NNI but a guesstimate is that massive layoffs of at least 500 people will take place in the field force and back office functions.

The reason for the layoffs that come only two years after the last round is the expected shortfall next year because of increased rebates to Medicare in 2019 to the tune of 1-2% point impact on sales and operating profit.
Click to expand...

I doubt this is a deliberate hoax just to scare employees. that said, it is somewhat speculative. To my mind something not good has to happen because big institutional shareholders will want to see costs taken out of the business due to things like "pricing headwinds" and lower operating profit. Unfortunately layoffs are the fastest route to get to improved financial results for any corporation.
 




anonymous said:
I doubt this is a deliberate hoax just to scare employees. that said, it is somewhat speculative. To my mind something not good has to happen because big institutional shareholders will want to see costs taken out of the business due to things like "pricing headwinds" and lower operating profit. Unfortunately layoffs are the fastest route to get to improved financial results for any corporation.
Click to expand...

NVO is mostly a Ponzi scheme of a stock owned mostly by its own employees. Institutional ownership is in the single digits. Compare that with a company like AAPL that has almost 2/3s institutional ownership or LLY which is 3/4.

Less than 10% for NVO = it’s more important that the lemmings keep buying the stock. Doesn’t matter what institutions think.
 












I don't want to enter into all kind of speculation but just look at the facts: Btw 1 and 2%-points of sales and OP will wither away next year due to the infamous doughnut hole rebates; diabetes is generally not doing that well due to price cuts and competition everywhere you look; biopharm is a lost cause with Hemlibra eating NovoSeven for lunch; R&D has not come up with one good new molecule since sema many years ago; massive investments are needed to support Ozempic launch and a CV outcomes study for oral sema.

If you add all of this together and combine it with the fact that the current executive mgmt team has been raised in the ruthless financial management school of Kare Schultz, Jesper Brandgaard and Lars Rebien, then I would personally not be surprised to see massive job losses during the fall.
 




You guys drink too much kool aid. These rebates have been known since 2009. We tried to reverse them due to a GOP administration but the donut hole was always supposed to close next year.

This is nothing new. We just tried to lobby to reverse.
 












i just have to say you are all dumber than a box of hammers. Maybe spend less time on cafapharma and more time selling and having to give 1-2% more back wouldn't matter.
 




Top Bottom
Back
Quote