Novo Nordisk Cuts 9,000 Jobs Amid Global Obesity Drug Competition

Novo Nordisk, the Danish pharmaceutical giant known for its weight-loss drugs Ozempic and Wegovy, announced it will lay off about 9,000 employees, or 11% of its global workforce, in a major restructuring aimed at streamlining operations and reallocating resources towards growth in diabetes and obesity. The company expects to save approximately $1.25 billion annually by the end of 2026, with around 5,000 layoffs occurring in Denmark alone. CEO Mike Doustdar highlighted that the weight-loss drug market has become more competitive and consumer-driven, with Novo facing intense competition from U.S.-based Eli Lilly and a surge of cheaper generic GLP-1 drugs. Novo Nordisk has also lowered its profit guidance due to these headwinds and restructuring costs, while planning to reinvest savings into its drug pipeline and new market launches. Despite the layoffs, the company maintains that Wegovy remains its largest cash generator, though it plans to shelve some less profitable R&D projects. The restructuring has prompted a modest rise in Novo's stock price, but the significant job cuts mark a sharp turnaround after years of rapid staff growth and soaring market value.