Novo Nordisk, maker of the weight-loss drug Wegovy and Ozempic, announced plans to cut 9,000 jobs, or 11.5% of its workforce, as part of a restructuring aimed at reviving growth and countering rising competition from Eli Lilly (LLY.N) and a wave of compounded copycat drugs. The layoffs, the largest in Denmark’s history, will mostly affect its home country, where 5,000 positions will go.
The company said the overhaul is expected to save 8 billion Danish crowns ($1.25 billion) annually.
Novo, which employs 78,400 people worldwide, is slimming down while also trying to expand production, prepare a pill version of Wegovy, and explore additional health benefits of its GLP-1 portfolio.
Mike Doustdar, Novo Nordisk president and CEO, said:
“As the global leader in obesity and diabetes, Novo Nordisk delivers life-changing products for patients worldwide. But 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.”
Despite the layoffs, Danish Finance Minister Nicolai Wammen said the country’s economy remains robust and is unlikely to be affected.
Novo has struggled in recent months. In July, investors erased about $70 billion from its market value after it warned on profits and appointed Doustdar as CEO. Shares have fallen nearly 46% since the start of the year, bringing its market capitalisation down to about $181 billion from a peak of $650 billion last year.
Competition remains fierce: Eli Lilly’s Zepbound overtook Wegovy in weekly U.S. prescriptions earlier this year, though Wegovy has since narrowed the gap with stronger summer sales.
Novo’s flagship drugs Wegovy and Ozempic are also showing signs of slowing momentum in the U.S. market.
17.09.2025.
Photo: Novo Nordisk, Odense, Denmark. State-of-the-art finished production facility and warehouse spanning over 40,000 m2. Scheduled to be completed in 2027.
