Novo Nordisk, the Danish pharmaceutical company behind weight-loss drugs and diabetes drugs Ozempic and Wegovy, announced on Wednesday that it will lay off 9,000 employees worldwide. The restructuring aims to reduce costs by 8 billion Danish crowns (approximately $1.26 billion) annually, as the company faces mounting competition from U.S. rival Eli Lilly.
The decision follows an August hiring freeze for non-critical roles, signaling the company’s tightening measures amid a rapidly changing pharmaceutical market. The job cuts will represent more than 11 percent of it’s global workforce of about 78,400 employees.
Layoffs to Affect Denmark and Global Operations
According to the company’s statement, approximately 5,000 of the affected employees are based in Denmark, with the remaining 4,000 spread across its global operations. The cuts are expected to impact nearly all departments, though Novo Nordisk clarified that sales and production will remain unaffected in the short term.
“Novo Nordisk today announced a company-wide transformation to simplify its organization, improve the speed of decision-making, and reallocate resources toward growth opportunities in diabetes and obesity,” the company said.
Despite the large-scale layoffs, its emphasized that its research pipeline remains on track. The company noted that the U.S. Food and Drug Administration is currently reviewing its oral semaglutide treatment for obesity, and this process will not be affected by the restructuring.
Strategic Shift Under New Leadership
The announcement comes just weeks after Mike Doustdar took over as chief executive officer in August, succeeding Lars Fruergaard Jørgensen. Doustdar pointed to increased competition in the obesity-treatment market as a major factor behind the restructuring.
“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 the statement.
He added that Novo Nordisk intends to “instill a performance-based culture, deploy resources more effectively, and prioritize investments where they will have the most impact — behind our leading therapy areas.”
The company has been at the forefront of the global surge in demand for weight-loss drugs, with Ozempic and Wegovy gaining wide recognition. However, Eli Lilly’s rival product, Mounjaro, has intensified competition, prompting Novo Nordisk to streamline operations and sharpen its focus on core therapeutic areas.
Industry-Wide Wave of Job Cuts
Novo Nordisk’s move mirrors a broader trend in the corporate sector, where major technology and healthcare firms have announced large-scale workforce reductions in 2025. Oracle, Microsoft, and other companies have recently laid off thousands of employees, citing efficiency drives and shifting market demands.
Analysts note that while Novo Nordisk remains financially strong, the layoffs highlight the company’s effort to adapt quickly to changing dynamics in the fast-growing market for diabetes and obesity treatments.
The company reiterated that the restructuring is designed not only to save costs but also to position Novo Nordisk for long-term growth in an increasingly competitive global pharmaceutical landscape.
Also Read :- Rising Cost of Mounjaro (weight loss drug) Could Drive Patients to Black Market, Says GP
