Novo Nordisk to cut 9,000 jobs as competition in weight-loss drugs intensifies

Novo Nordisk announced it will cut about 9,000 jobs, roughly 11% of its workforce, as the Danish maker of Ozempic and Wegovy moves to reduce costs in the face of growing competition in the obesity-drug market.

The redundancies are part of a plan to achieve savings of 8 billion Danish kroner (about £927 million) by the end of next year after the company warned in July that full-year sales and profits would not grow as quickly as previously expected. The job cuts mark the first major move by new chief executive Mike Doustdar as Novo Nordisk adjusts to what he described as an increasingly "competitive and consumer-driven" market for obesity treatments.

Doustdar said in a statement that while "it is always difficult to see talented and valued colleagues go," the company was convinced the step was appropriate for its long-term success. Novo Nordisk said it will begin consultations with employees in the coming months, in line with local labour laws.

The decision follows a period of intense interest in GLP-1 and similar weight-loss medicines, which saw demand surge after COVID-19 lockdowns. Novo Nordisk faces increased competition from rivals such as Eli Lilly, maker of the diabetes and weight-loss medicine Mounjaro. In the United Kingdom, Eli Lilly recently raised the price of Mounjaro by as much as 170%, taking the monthly cost of the highest dose from £122 to £330; the hike prompted reports of some patients and pharmacies stockpiling supplies ahead of the increase.

Analysts and company statements have pointed to a more crowded market, with a growing number of new entrants and what Novo Nordisk described as more "knock-off" weight-loss drugs, putting pressure on pricing and growth expectations. The company did not disclose which business units or regions would see the deepest cuts and said details would be worked through during employee consultations.

Novo Nordisk's range of medications, including the widely prescribed Ozempic and the weight-loss brand Wegovy, had been central to the firm's recent revenue gains. The announced restructuring signals a strategic pivot to protect margins and adapt to rapid changes in demand and competition.

The company said it remained focused on its core mission of treating diabetes and obesity and would continue investing in research and development, while aligning its cost base with the evolving market environment. Further specifics on timing and the geographic distribution of job losses are expected as consultations progress.