Novo Nordisk to Cut 9,000 Jobs in Major Restructuring as Obesity Market Intensifies
Company says cuts—about 11.5% of workforce—will save $1.26 billion annually; roughly 5,000 roles to be eliminated in Denmark
Novo Nordisk announced on Wednesday that it will cut 9,000 jobs, about 11.5% of its global workforce, in a company-wide restructuring intended to save roughly $1.26 billion annually as it shifts resources toward growth areas in diabetes and obesity.
The Danish drugmaker said the plan is designed to simplify its organisation, speed decision-making and reallocate resources to priority therapy areas. The reductions affect roughly 78,400 positions worldwide and will include about 5,000 job losses in Denmark. Newly appointed Chief Executive Officer Mike Doustdar said the move reflects a need for the company to evolve as the obesity market becomes more competitive and consumer-driven.
Novo said it will record one-off restructuring costs of $1.4 billion in the third quarter, including impairment charges, and expects to realise $156.9 million of the planned annual savings in the fourth quarter. The company also said its operating profit growth forecast for the year is now expected to be between 4% and 10%, down from a previous range of 10% to 16%, a reduction Novo attributed solely to the restructuring charges.
The changes come amid intensifying competition in the market for GLP-1–based obesity treatments that propelled Novo to the top of European markets last year after booming sales of Wegovy. The company, which also markets the diabetes drug Ozempic, has seen Wegovy’s market share and sales growth slow, particularly in the United States, and has warned of materially slower growth this year.
Investors have reacted sharply in recent months. In July, Novo warned of weaker-than-expected profit and named Doustdar as CEO, a combination that led to about $70 billion being wiped from the company’s market value. Its shares have fallen nearly 46% since the start of the year, reducing its market value to about $181 billion as of Tuesday’s close.
Novo said earlier this year it had implemented a global hiring freeze covering roles not critical to the business. The company also cited competitive pressures from U.S. rivals and the emergence of copycat medicines produced by compounders who were allowed to make versions of GLP-1 formulations during shortages.
In the company statement, Doustdar said, "Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well. This means instilling an increased performance-based culture, deploying our resources ever more effectively, and prioritising investment where it will have the most impact — behind our leading therapy areas."
Novo indicated the restructuring is intended to improve speed of decision-making and focus investment on areas with the greatest growth potential. The company will report the one-off costs and the timing of savings in its third-quarter results and has not provided a detailed breakdown of which business units or functions will see the largest reductions.
Analysts and investors will be watching whether the reorganisation restores momentum in Novo’s core diabetes and obesity franchises and how quickly the company can translate layoffs and cost-saving measures into improved profitability. Novo’s move underscores broader shifts in the pharmaceutical industry as manufacturers of GLP-1 drugs face growing competition, regulatory scrutiny and changing market dynamics.
The company said it will continue to prioritise investment in diabetes and obesity treatments while pursuing the announced cost reductions and organisational changes. Financial details beyond the announced one-off charge and expected annual savings were not provided.