Novo Nordisk, the Danish pharmaceutical titan behind Ozempic, revealed today a sweeping global restructuring plan to cut roughly 11% of its total workforce, as rival weight-loss drugs flood the market.
Novo Nordisk faces increasing competition from Eli Lilly, the U.S. firm behind Mounjaro, and a new wave of cheaper, compounded alternatives. By cutting around 9,000 positions — more than half of which are based in Denmark — the company anticipates annualized savings of roughly $1.25 billion by the end of 2026, with the funds earmarked for reinvestment in its diabetes and obesity therapy areas.
“Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well,” Mike Doustdar, Novo Nordisk president and CEO, said in the announcement. This means accelerating a “performance-based culture” and prioritizing investment “where it will have the most impact — behind our leading therapy areas,” he added. The savings will be redirected to growth opportunities in diabetes and obesity, including both commercial execution initiatives and R&D programs, the company said.
“Novo Nordisk, which had grown fat on the spoils of its weight loss drugs, has been feeling the effects of rivals marching into the space. Uncertainty over American tariffs has also been a risk that continues to cast a shadow over the industry,” Susannah Streeter, a Hargreaves Lansdown analyst, told The Guardian. “By becoming a leaner machine, Novo hopes to redirect more funding to R&D to bolster its pipeline of products.”
The workforce reduction also signals a dramatic reversal of a hiring spree that saw its headcount grow by 75% over the last five years, as the global popularity of its weight-loss drugs soared. The layoffs bring its headcount back to early-2024 levels, Redburn Atlantic analyst Simon Baker told Reuters.
Novo Nordisk estimates it will incur one-off net restructuring costs of about $1.25 billion, largely during the third quarter of this year. The company lowered its full-year 2025 operating profit growth forecast from 10-16% to 4-10% due to the restructuring’s impact.
The announcement came just weeks into Doustdar’s tenure as CEO. He signaled that this restructuring is one of his first major actions to reposition the company for long-term success.
While Novo Nordisk’s shares dipped following earlier profit warnings, investors responded positively to the restructuring plan: Its Danish-listed stock rose approximately 3%, while U.S. shares climbed around 1.7% in pre-market trading.
