Where there are layoffs, return-to-office mandates appear quick to follow. Novo Nordisk’s RTO mandate confirms as much, with a new order for employees to return to the office full-time. Ozempic and Wegovy-maker Novo Nordisk just announced a five-day in-office mandate after it cut 9,000 jobs earlier this week. While the move has been linked to a desire for more collaboration and accelerated decision-making, the announcement of RTO after layoffs follows a suspicious trend of organizations pushing employees to quit to further aid the business in bringing down the headcount without additional cuts.
Media conglomerate Paramount was accused of doing much the same recently, and in the world of tech, similar accusations have been levied against Microsoft, although the company reassured employees that its three-day RTO mandate was not targeted at seeking resignations. With the growing number of layoffs we’ve witnessed, the glory days of remote work appear to be coming to an end, but experts have begun to question the effectiveness of such circuitous strategies.
The Nordisk RTO mandate could be a strategy to encourage attrition, but if community-building is the goal, additional policy changes will be necessary. (Image: Pexels)
The Nordisk RTO Mandate Follows Layoff Announcements in Short Order
The details around the Novo Nordisk RTO mandate are sparse, but the company is hoping to set a “new global standard” of work in the office. Unlike some companies that have conceded to hybrid models rather than go against the grain and bring employees back full-time, Novo Nordisk’s policy after layoffs requires a full-time return to work.
Sources from news agency Ritzau claimed the company did not previously have a fixed policy on working from home, as the rules varied between countries and departments. As a result, it is unclear how many workers will be freshly affected by the five-day in-office requirement at Novo and how many were already on their way to the office with some regularity.
Reports suggest that employees may have room to negotiate flexibility with managers as long as “both personal and business needs are met.”
What Is the Reason for Novo Nordisk’s RTO Mandate?
Much like other businesses that have recommitted to in-person work, Novo Nordisk’s decision to end remote work has been linked to a desire for better collaboration and targeted results. Employers appear to agree that good work culture and business practices can only thrive when employees work face-to-face, despite multiple reports suggesting that employees are much happier working from home.
“This is designed to foster a stronger sense of belonging, strengthen relationships, enhance collaboration, and accelerate decision-making processes,” Novo Nordisk said in a statement regarding the call for a return to the office at Novo. “Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well,” Mike Doustdar, Novo Nordisk president and CEO, added in the announcement.
Just as RTOs after layoffs have become common, the rise in such policies after a change in leadership has also been observed. Novo Nordisk meets both criteria. Under the new CEO, the company is hoping to re-establish itself in the pharmaceutical market after a sales slump knocked off $450 billion from the company’s market cap in 2024. With the rise of competition in the weight-loss drug industry, Novo Nordisk is hoping to find its footing and pick up the pace on innovation.
The Rise of RTO Mandates After Layoffs Is Setting Employees on Edge
Business leaders who participated in the survey by the Federal Reserve Beige Book report acknowledged that RTO policies are an increasingly common way to bring down the headcount without having to enforce layoffs. This strategy is a direct result of employees claiming that they would quit if their employers no longer allowed them to work from home.
While HR teams may feel that “voluntary” exits are a more favorable choice than being laid off, employees are equally unhappy about the use of RTO mandates, encouraging them to leave. Some employees may commit to their cause and look for alternative employment, but with the “job hugging” trend gaining popularity, most will still show up to work with diminished enthusiasm.
This can only serve to hurt the business’ hope for collaboration and communication, allowing their frustrations to lead to conflicts with colleagues and the management.
HR Teams Need To Expand on Culture-Building Strategies
Fostering a sense of belongingness among employees is good for business. But with both the news of layoffs and the RTO mandates hanging over them, many will continue feeling apprehensive and out of place. To truly drive in the feeling of community and collaboration, HR teams will have to ramp up their investments in other unity-building activities and policies to convince workers that attrition isn’t the goal.
The Nordisk RTO mandate may be able to stabilize the company and speed up the decision-making process by way of face-to-face interactions, but additional changes will be necessary to bring employees onto the same page before that happens.
Do you think the five-day in-office mandate at Novo Nordisk will only result in more exits, or is there room for legitimate gains? Share your insights with us. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.