Novo Nordisk, the Danish pharmaceutical giant known for its weight-loss drug Wegovy and diabetes treatment Ozempic, announced today a plan to eliminate 9,000 jobs. The volume represents approximately 11% of its workforce. Around 5,000 positions will be cut in Denmark alone.
The initiative aims to cut costs and save DKR 8 billion (around US$ 1.25 billion) annually by 2026, despite a restructuring charge of the same amount. The move follows escalating competition, especially from American rival Eli Lilly, and pressure from cheaper generic and compounded versions of its GLP-1 drugs, which have squeezed growth in key markets.
New CEO Mike Doustdar, who took the role this July after a sharp market value decline, announced the job cuts as part of his early strategic moves. The reshuffle will occur over the coming months, building on a global freeze on hiring for non-critical roles as well.
The company will reverse a hiring surge that saw headcount grow nearly 75 % in the past five years, fueled by the success of Wegovy and Ozempic. Doustdar emphasized a shift toward a culture that rewards performance, with streamlined operations and sharper focus on core areas, such as diabetes and obesity treatments, over broader expansion.
Following the announcement, Novo Nordisk’s shares rose modestly, around 1,7% on its main stock market. Local analysts from Sydbank view the cuts as appropriate to the transition from “hypergrowth” to slower markets, while others warn about potential underinvestment in R&D and promotion efforts.
The scale of cuts will reverberate in Denmark, where Novo Nordisk plays an outsized economic role. This marks a turning point: as obesity drug markets become more consumer-driven and competitive, the firm is scaling back its ambitious growth model to preserve long-term efficiency.
