Novo Nordisk, the Danish pharmaceutical powerhouse behind diabetes treatment Ozempic and weight-loss therapy Wegovy, has announced plans to cut approximately 9,000 jobs worldwide, a move equivalent to around 11 to 11.5% of its global workforce, as part of a sweeping corporate restructuring aimed at boosting competitiveness in the rapidly changing obesity drug market.
The company is responding to mounting pressure from rival Eli Lilly, whose weight-loss injectable Mounjaro has gained ground, alongside a rise in lower-cost generic and compounded versions of semaglutide-based medications. With momentum slowing in key markets, particularly the United States, Novo Nordisk has been struggling to replicate its prior meteoric growth. Of the 9,000 redundancies, around 5,000 roles will be axed in Denmark, the company’s home base. The remaining cuts will impact operations across its international footprint, affecting a sizeable share of its 78,400-strong workforce.
The restructuring is expected to yield annual savings of approximately 8 billion Danish kroner (equivalent to roughly £920 to 930 million) by the end of 2026. However, the move comes with upfront costs. Novo expects to incur one-off restructuring expenses of a similar amount, estimated at 9 billion kroner, to roll out the plan. In light of these changes, the company has downgraded its 2025 operating profit growth forecast. It now anticipates growth between 4% and 10%, significantly lower than the previous 10% to 16%, and earlier, 19% to 27% projections.
Appointed as CEO in August, Maziar Mike Doustdar described the overhaul as a necessary pivot to a performance-oriented culture. He emphasised the need to simplify the company’s structure, speed up decision-making, and channel resources into its most promising therapy areas, namely diabetes and obesity treatments. Doustdar acknowledged the difficulty of the decision but underlined its long-term strategic importance in an increasingly consumer-driven and competitive market.
Markets responded positively to the announcement. Novo Nordisk shares rose approximately 3% on the Copenhagen stock market and 1.7% in US pre-market trading, as investors viewed the restructuring as a clear path to restoring operational discipline and profitability. This marks the third profit warning issued by Novo Nordisk this year. Its share price has tumbled nearly 46% year-to-date, erasing billions of dollars in market value and signalling investor concern over its ability to fend off competition.
Over the past five years, the company has expanded aggressively, growing its headcount from approximately 43,700 in 2020 to 78,400 today. The layoffs are expected to reverse those recent hiring surges and return the workforce to levels seen before the weight-loss drug boom.
Both Wegovy and Ozempic are occasionally prescribed for type 2 diabetes and weight management, especially for those at high clinical risk. Any supply disruptions or pricing shifts globally could ripple to NHS availability, though no immediate job impact has been confirmed. Patients demanding obesity treatments may increasingly turn to alternative offerings if Wegovy’s supply or availability falters.
The restructuring underscores the maturity of the GLP-1 obesity drug market, which began as a pharmaceutical boom and is now entering a phase of increased efficiency and rationalisation. Overall, Novo Nordisk’s decision to cut 9,000 jobs underscores the end of the weight-loss drug boom era and a recalibration toward leaner operations and targeted innovation. The key watch-points will be maintaining access to treatments like Wegovy and Ozempic amid shifting global dynamics.
