Novo Nordisk (NVO) Announces a Major Company Wide Transformation

Novo Nordisk A/S (NYSE:NVO) is one of the Best Low Cost Stocks to Buy According to Analysts. On September 10, Novo Nordisk A/S (NYSE:NVO) announced a major company-wide transformation with the goal of simplifying the organization, speeding up decision-making, and focusing resources on growth in diabetes and obesity.

As part of this strategy, the company will reduce its workforce by around 9,000 positions out of 78,400, cutting around 5,000 jobs in Denmark. Management noted that this move is to address the challenges that have arisen due to rapid growth, and has brought complexity and higher costs. Now the company faces a more competitive and consumer-driven obesity market with slower growth recently.

Savings from cutting the jobs are estimated at DKK 8 billion annually by the end of 2026. Management believes that this will support growth initiatives in diabetes and obesity. The one-time restructuring cost is estimated at around DKK 8 billion in 2025; as a result, the operating profit growth outlook is now expected between 4% to 10% against the previous expectation of 10% to 16%.

Novo Nordisk A/S (NYSE:NVO) is a global healthcare company focused mainly on diabetes and obesity care.

While we acknowledge the potential of NVO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.