Novo Nordisk to Cut 9,000 Jobs, Cites Competitive Shift in Obesity Market

Novo Nordisk on Wednesday announced plans to cut about 9,000 jobs, or roughly 11% of its global workforce, as the Danish drugmaker moves to reshape operations amid increased competition in the obesity treatment market. The company said the reductions are expected to save more than $1.25 billion by the end of next year.

The company, which employs about 78,000 people worldwide, said a majority of the cuts—approximately 5,000 roles—will be concentrated at its factories and near its headquarters in Denmark, and that the workforce reductions will be implemented across the company. Mike Doustdar, who was appointed chief executive earlier this year, said the changes reflect shifts in market dynamics. "Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven," he said. "Our company must evolve as well."

Novo Nordisk rose to global prominence in 2023 after its GLP‑1 products, including Ozempic and Wegovy, produced strong weight‑loss results that generated intense consumer demand. The company rapidly expanded scientific, medical and manufacturing staff to boost production as competitors, including U.S. firms such as Eli Lilly, increased their presence in the market. Now, with the field more crowded and growth moderating, Novo said it is trimming the headcount built up during the rapid expansion.

The job cuts follow a period of leadership and strategic changes at the company. In May, the company removed its long‑time CEO Lars Fruergaard Jørgensen after seven years in the role, and in recent weeks Novo Nordisk reduced prices on some consumer products in an effort to attract customers amid rising competition.

Novo's announcement comes against the backdrop of broader labor weakness in the United States and an uptick in corporate layoffs globally. Federal data released recently revised last year’s new job tally downward by 911,000, and August job growth was reported at 22,000—far below Wall Street forecasts. June payroll data showed a decline of 13,000 jobs. Economists and analysts have described the pattern as a softening labor market, and some say the trend could presage wider economic headwinds.

Mark Zandi, chief economist at Moody's Analytics, said a "labor recession" is underway and warned that further negative revisions to employment data could worsen the situation. Layoff announcements are already up markedly from a year earlier, and large employers across sectors have reported workforce reductions in recent months.

High‑profile U.S. companies that have pared staff this year include Walmart, which cut about 1,500 roles in technology and e‑commerce, and Intel, which announced a global staff reduction of roughly 20%. Procter & Gamble revealed plans to eliminate about 7,000 positions. Other firms, including Microsoft, Amazon, UPS and ConocoPhillips, have also disclosed workforce reductions. Employers and analysts have pointed to the growing role of artificial intelligence and automation as one factor reshaping headcount needs; Amazon CEO Andy Jassy has said that the rollout of generative AI and agent technologies "should change the way our work is done."

Industry analysts said the scale of Novo Nordisk's cuts underscores the rapid swing from hiring to downsizing that has followed the surge in demand for GLP‑1s. The company did not immediately respond to requests for comment regarding implementation timelines or the distribution of cuts across functions and geographies.

Novo Nordisk said it will provide further details to employees and local authorities as the reductions are carried out. The company added that it will continue to invest in key areas of its business while adjusting capacity to reflect current and expected market conditions.