Novo Nordisk, a Denmark-based multinational pharmaceutical company, will slash 400 jobs in its research and development unit, Reuters reported.
The company, which specializes in making diabetes drugs, said the layoffs in China and Denmark will allow it to focus on biological and technological innovation investment.
"This is not a cost-cutting exercise," Novo's chief science officer Mads Krogsgaard Thomsen told Reuters. "Our analysis shows that we have a surplus of manual labor and are lacking competences in the digital sphere, informatics, data science, artificial intelligence and automations."
Novo plans to create four new "biotech-like units" this year in Denmark, the United Kingdom and the U.S. as it seeks biological and technological innovation, according to the report. The company said its other plans include increasing investment in automation and digital capabilities.
Novo announced in June that is was considering layoffs amid an "uncertain and unpredictable" U.S. insulin market.
More articles on leadership and management:
AHA, CHA leaders fire back at emergency room cost op-ed
Healthcare executives rank top challenges for next year
Vermont hospital has first honor walk to celebrate organ donors