Novo Nordisk Rationalizing

Danish pharmaceutical company Novo Nordisk is in the process of making an assessment of its staff and services functions, with the aim of implementing rationalization measures that will produce cost savings in the range of 300 million to 700 million Danish kroner ($51.3 million-$119.7 million).

The firm is not using outside consultants to make the assessment. It started its own program of assessment using its own staff in January, which is due to conclude in October, Henrik Gurtler, corporate executive vice president at NN told the Marketletter. He said that staff and services that are not part of the productivity chain are being assessed, following a tightening up of production and sales in 1994 and 1995.

A four-category system has been set up to measure value. These are: critical, important, less important, and non-value adding. Mr Gurtler said that rationalization will be implemented from the bottom up in relation to these four categories, with the aim of decreasing internal service levels.