Novo Nordisk tells staff to return to office full-time amid CEO’s revival effort

COPENHAGEN (Reuters) -Wegovy-maker Novo Nordisk said on Thursday it had told all its staff to return to the office as the drugmaker’s new CEO tries to accelerate decision-making and improve its commercial execution amid intense competition in the obesity drug market.

Novo on Wednesday said it would cut 9,000 jobs after sales growth had stalled and shares had slumped, knocking $450 billion off the company’s market cap since the middle of last year, as it faces competition from U.S. rival Eli Lilly and a wave of compounded copycat drugs.

“This is designed to foster a stronger sense of belonging, strengthen relationships, enhance collaboration and accelerate decision-making processes,” the company said in a statement.

The company declined to comment on what its previous work-from-home policy was. According to Danish news agency Ritzau, there were no general guidelines on working from home prior to Thursday, and rules varied from one country and department to another.

The chair of Danish trade union HK Privat, which organises administrative staff and laboratory technicians at Novo Nordisk, said he was surprised that Novo had discontinued its work-from-home policy.

“Working from home and a vibrant office culture are not necessarily mutually exclusive,” Kim Jung Olsen said in a statement.

“It is unfortunate for the many employees who have enjoyed being able to work from home from time to time that management has not managed to make this work at Novo Nordisk.”

Novo’s request comes after other companies have abandoned work-from-home policies.

In January, JPMorgan Chase asked employees to return to the office five days a week starting in March, while U.S. President Donald Trump has ordered federal workers back to the office. Amazon and others already asked staff to return to the office late last year.

Novo said it would still be possible for employees to make individual agreements with their managers, leaving some room for flexibility to ensure that both personal and business needs were met.

(Reporting by Jacob Gronholt-Pedersen, writing by Louise Rasmussen, editing by Louise Heavens)