Wegovy injection pens arranged in Waterbury, Vermont, US, on Monday, April 28, 2025.
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Shelby Knowles | Bloomberg | Getty Images
Danish pharmaceutical giant Novo Nordisk on Wednesday announced plans to cut around 9,000 roles, or roughly 11.5% of its global workforce.
“Novo Nordisk today announced a company-wide transformation to simplify its organisation, improve the speed of decision-making, and reallocate resources towards the company’s growth opportunities in diabetes and obesity,” the company, which produces the Wegovy weight loss medication, said in a statement,
“As part of the transformation, Novo Nordisk intends to reduce the global workforce by approximately 9,000 of the 78,400 positions in the company, with around 5,000 reductions expected in Denmark.”
The company said the headcount reduction would incur a one-off cost of 8 billion Danish kroner ($1.26 billion).
Novo Nordisk, the Danish pharmaceutical giant renowned for its weight-loss drug Wegovy and diabetes treatment Ozempic, has announced plans to eliminate approximately 9,000 jobs globally—representing about 11% of its workforce. This significant move aims to streamline operations and achieve annual cost savings of 8 billion Danish crowns (approximately $1.26 billion) .
Reasons Behind the Restructuring
The decision comes amid intensifying competition, particularly from U.S. rival Eli Lilly, and a slowdown in sales growth in key markets like the United States. The company has been facing challenges from generic versions of its leading product, Wegovy.
Impact on Employees and Operations
Approximately 5,000 of the job cuts will occur in Denmark, where Novo Nordisk is headquartered The Copenhagen. The company currently employs around 78,400 people globally Seeking Alpha. The restructuring is expected to result in one-off costs of 9 billion Danish crowns in the third quarter but is anticipated to generate 1 billion crowns in savings in the fourth quarter Reuters.
Financial Outlook
As a result of the restructuring, Novo Nordisk has revised its expected operating profit growth for the year downward to between 4% and 10%, from the initial 10%-16% Financial Times. The company’s market value has significantly dropped, with shares declining nearly 46% since the beginning of the year Reuters.
Strategic Focus Moving Forward
New CEO Mike Doustdar emphasized the need for streamlining operations, adopting a performance-based culture, and focusing investments on core areas such as diabetes and obesity treatment Reuters. This transformation is part of Novo Nordisk’s broader strategy to adapt to the evolving pharmaceutical landscape and maintain its competitive edge.
The restructuring reflects the challenges faced by pharmaceutical companies in an increasingly competitive market and underscores the need for continuous adaptation to sustain growth and profitability.
As a result of the one-off costs, the company said its now expect full-year operating profit growth of 4% to 10%, down from the 10% to 16% outlined in its second-quarter results in August.
Go to the official website for additional details on other activities.
Wegovy injection pens arranged in Waterbury, Vermont, US, on Monday, April 28, 2025.
Shelby Knowles | Bloomberg | Getty Images
Danish pharmaceutical giant Novo Nordisk on Wednesday announced plans to cut around 9,000 roles, or roughly 11.5% of its global workforce.
“Novo Nordisk today announced a company-wide transformation to simplify its organisation, improve the speed of decision-making, and reallocate resources towards the company’s growth opportunities in diabetes and obesity,” the company, which produces the Wegovy weight loss medication, said in a statement,
“As part of the transformation, Novo Nordisk intends to reduce the global workforce by approximately 9,000 of the 78,400 positions in the company, with around 5,000 reductions expected in Denmark.”
The company said the headcount reduction would incur a one-off cost of 8 billion Danish kroner ($1.26 billion).
Novo Nordisk, the Danish pharmaceutical giant renowned for its weight-loss drug Wegovy and diabetes treatment Ozempic, has announced plans to eliminate approximately 9,000 jobs globally—representing about 11% of its workforce. This significant move aims to streamline operations and achieve annual cost savings of 8 billion Danish crowns (approximately $1.26 billion) .
Reasons Behind the Restructuring
The decision comes amid intensifying competition, particularly from U.S. rival Eli Lilly, and a slowdown in sales growth in key markets like the United States. The company has been facing challenges from generic versions of its leading product, Wegovy.
Impact on Employees and Operations
Approximately 5,000 of the job cuts will occur in Denmark, where Novo Nordisk is headquartered The Copenhagen. The company currently employs around 78,400 people globally Seeking Alpha. The restructuring is expected to result in one-off costs of 9 billion Danish crowns in the third quarter but is anticipated to generate 1 billion crowns in savings in the fourth quarter Reuters.
Financial Outlook
As a result of the restructuring, Novo Nordisk has revised its expected operating profit growth for the year downward to between 4% and 10%, from the initial 10%-16% Financial Times. The company’s market value has significantly dropped, with shares declining nearly 46% since the beginning of the year Reuters.
Strategic Focus Moving Forward
New CEO Mike Doustdar emphasized the need for streamlining operations, adopting a performance-based culture, and focusing investments on core areas such as diabetes and obesity treatment Reuters. This transformation is part of Novo Nordisk’s broader strategy to adapt to the evolving pharmaceutical landscape and maintain its competitive edge.
The restructuring reflects the challenges faced by pharmaceutical companies in an increasingly competitive market and underscores the need for continuous adaptation to sustain growth and profitability.
As a result of the one-off costs, the company said its now expect full-year operating profit growth of 4% to 10%, down from the 10% to 16% outlined in its second-quarter results in August.
Go to the official website for additional details on other activities.
