Novo Nordisk to cut 9,000 jobs as obesity drug market grows more competitive
Company will eliminate about 11% of its workforce, redirecting savings to diabetes and obesity research and development
FRANKFURT, Germany — Novo Nordisk announced Wednesday it will cut 9,000 jobs worldwide, including about 5,000 in Denmark, as the Danish pharmaceutical company reshapes itself to focus on growth opportunities in diabetes and obesity treatments.
The reduction amounts to roughly 11% of the company's workforce of about 78,400 employees and is intended to reduce organizational complexity and accelerate decision-making. Novo Nordisk said the restructuring is expected to generate savings of 8 billion Danish kroner ($1.25 billion) by the end of 2026, funds it plans to redirect to diabetes and obesity programs, including research and development.
"Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven," President and Chief Executive Officer Mike Doustdar said in a statement. "Our company must evolve as well. This means instilling an increased performance-based culture, deploying our resources ever more effectively, and prioritizing investment where it will have the most impact — behind our leading therapy areas." Doustdar became CEO in May.
Novo Nordisk makes the prescription weight-loss drug Wegovy and the diabetes medication Ozempic, both based on the active ingredient semaglutide. Those products helped drive a period of rapid growth and pushed the company to become Europe’s most valuable firm at its peak, with a market capitalization that exceeded Denmark’s annual gross domestic product. The company has faced increasing competition in the obesity market in recent months, most notably from Eli Lilly and others developing appetite-regulating therapies.
The company said implementation of the job cuts will begin immediately and that affected employees will be informed over the coming months, in line with local labor rules. Novo Nordisk is headquartered in Bagsværd, just outside Copenhagen.
The restructuring aims to streamline the company’s operations and concentrate investment on areas with the largest expected returns. Novo Nordisk said the cost reductions will be used to support research and development, expand manufacturing capacity where needed, and bolster commercial efforts in diabetes and obesity.
Analysts and investors have closely watched the competitive dynamics of the weight-loss drug market, where demand surged after the launch of semaglutide-based treatments but has since attracted multiple new entrants and a more consumer-driven sales environment. Shares of Novo Nordisk rose sharply following the initial success of Wegovy and Ozempic but later declined amid heightened competition and changing market expectations, a shift that coincided with a leadership transition earlier this year.
In its announcement, Novo Nordisk reiterated its strategic commitment to diabetes and obesity as core therapy areas and said the restructuring is part of a broader effort to align the company’s cost base with its long-term priorities. The company provided no immediate estimate of severance costs or one-time charges associated with the layoffs.
Labour officials and unions in Denmark will be engaged as the company moves forward, and local rules will determine the pace and process for notifying and consulting with affected employees. Novo Nordisk said it intends to implement the changes in a manner consistent with applicable laws and regulations in each market.
The company’s decision marks one of the larger industrial workforce reductions announced by a major European pharmaceutical firm in recent years as the sector adapts to shifting competitive pressures and seeks to reallocate resources toward high-growth therapy areas.