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Investing.com -- Novo Nordisk A/S has canceled contracts for new recruits just days or weeks before their start dates as part of broader cost-cutting measures, Bloomberg reports.
The Danish drugmaker implemented a global hiring freeze this month and announced reductions in some employee bonuses after lowering its growth forecast for the year twice amid growing competition from U.S. rival Eli Lilly & Co.
According to Danish media, some affected candidates had already resigned from previous positions to join Novo Nordisk . Those whose contracts were canceled will receive one month’s salary as compensation and outplacement services.
"We have chosen to stop all hirings that are not critically necessary for Novo Nordisk’s operations," a company spokesperson told Bloomberg. "This unfortunately also includes a number of new hires in Denmark, where candidates have been offered the job but have not yet started."
The moves come as new Chief Executive Officer Maziar Mike Doustdar attempts to reboot the obesity-drug titan following recent financial challenges.
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