The company trims 9,000 roles, aiming to boost innovation and regain momentum in the obesity sector
A sweeping workforce reduction at Novo Nordisk, the Danish pharmaceutical company behind Wegovy and Ozempic, will see about 9,000 jobs eliminated globally—over 11 percent of its workforce.
According to Reuters, the move is designed to restore growth and sharpen the company’s focus on obesity and diabetes therapies.
The company expects the restructuring to save US$1.25–$1.3bn annually by the end of 2026, with plans to reinvest those savings into research and development, manufacturing expansion, and improved patient access, as reported by CNN.
The restructuring, described as the largest layoff in Denmark’s history, follows a period of rapid expansion that nearly doubled Novo Nordisk’s headcount over five years.
According to Reuters, this growth has now been reversed amid intensifying competition from Eli Lilly and a surge of copycat drugs in the obesity market.
CEO Maziar Mike Doustdar, who took the helm last month, stated that the overhaul is intended to simplify the company’s structure and redirect resources toward growth in diabetes and obesity, while also strengthening commercial execution and focusing on best-in-class launches as competition intensifies.
“Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well,” Doustdar said in a statement, as reported by The New York Times.
Sales growth at Novo Nordisk has stalled, and shares have fallen nearly 46 percent since the start of the year, erasing about US$450bn in market capitalisation since mid-2024, according to Reuters.
The company has issued three profit warnings this year and recently lowered its guidance for 2025 operating profit growth to a range of 4 percent to 10 percent, down from the 19 percent–27 percent range forecast at the beginning of the year.
The company’s strategic shift includes a renewed emphasis on direct-to-consumer channels and a commitment to reinvesting savings into its drug pipeline and launches in new markets, as per The New York Times.
According to analysts cited by Reuters, the obesity market has proven to be more consumer-driven than anticipated, and Novo Nordisk’s earlier expansion of organisational complexity contributed to its current challenges.
Shares in Novo Nordisk rose between 2 percent and 4 percent in Copenhagen following the announcement, as reported by Reuters.
