DENMARK – The biological solutions company, Novozymes has announced some organizational changes that will include loss of upto 330 jobs worldwide, as it aims at delivering strong growth.
Aligned with the strategy, announced in June this year, the company said that the updated strategic change will make resources available to investment in new growth opportunities, industries and markets, the company said.
The biological solutions firm confirmed that between 280 and 330 employees will be laid off globally, of which 123 are in Denmark.
“Layoffs will happen across divisions, functions and regions and in accordance with local processes and requirements. In addition, a number of employees will be transferred to new roles inside the company,” the company said in a statement.
“Better business with biology allows us to drive more value from the existing business and free up additional resources to invest in new strategic opportunities’” says Peder Holk Nielsen, chief executive at Novozymes.
“We will also invest more in commercial activities and innovation, especially in the emerging markets. To achieve this, it regrettably means that we need to lay off employees across the organization,” Nielsen added.
The company noted that the outcome of the strategy has shown that DKK 200-300 million (US$29.7m – US$44.6m) can be freed up from existing portfolios, from simplification and from efficiency improvements.
This will allow for significant reinvestments in the company and it supports Novozymes’ long-term growth potential.
“We will focus our R&D efforts on fewer projects with higher impact. At the same time, we explore new strategic opportunities where we continue to meet increasing customer needs and solve global challenges, such as clean water, human health and food availability,” says Peder Holk Nielsen.
Novozymes said while its financial performance is solid, the business has faced headwinds.
As announced on June 16 in the strategy update, the restructuring and related charges are included in the full year financial outlook.
The strategy company hopes that the strategy will drive higher sales and earnings growth over the three-year period 2020-2022, and beyond.