The Danish drugmaker Novo Nordisk, best known for its popular weight-loss drug Wegovy and diabetes treatment Ozempic, has announced a major restructuring that will result in 9,000 job cuts worldwide. The decision, which affects approximately 11.5% of its global workforce, comes as the company faces rising competition, slower growth, and pressure from its US rival, Eli Lilly.
The restructuring aims to save the company $1.26 billion annually by reducing costs and streamlining operations. Novo Nordisk currently employs around 78,400 people globally, with about 5,000 of the layoffs taking place in Denmark, where the company is headquartered.
Newly appointed CEO Mike Doustdar said the changes are necessary to keep pace with a fast-changing market, especially in obesity treatments, which have become more competitive and consumer-driven.
“Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well,” Doustdar said in a statement.
He explained that the company plans to adopt a stronger performance-driven culture, use its resources more effectively, and prioritize investments in key therapy areas like diabetes and obesity.
While the restructuring is expected to bring major savings, it will also come at an immediate cost. Novo Nordisk said it will report one-off restructuring charges of $1.4 billion in the third quarter, including impairment costs. However, the company expects to save nearly $156.9 million in the fourth quarter alone, thanks to the changes.
Due to these costs, the company has revised its 2025 operating profit growth forecast to a range of 4% to 10%, down from its earlier estimate of 10% to 16%.
Just last year, Novo Nordisk was celebrated as Europe’s most valuable listed company, worth $650 billion, largely because of strong sales of Wegovy. But the company’s fortunes have changed quickly.
In July, Novo shocked investors with a profit warning, citing slower sales and the rise of compounding pharmacies in the US. These pharmacies were allowed to make copycat versions of Wegovy’s active ingredient because of drug shortages, leading to more competition and weaker sales.
Following the warning, Novo’s market value dropped by $70 billion in a single day. The company also appointed Mike Doustdar, a long-time executive, as its new CEO to lead the transformation.
As of this week, shares of Novo Nordisk have fallen nearly 46% since the beginning of 2025, reducing its market value to about $181 billion.
