Novo Nordisk, the Danish drugmaker best known for its diabetes and weight-loss treatments, said on Wednesday that it would eliminate about 9,000 jobs worldwide, including 5,000 in Denmark. The cuts represent 11 percent of its global workforce and are expected to save 8 billion Danish kroner ($1.3 billion) annually by 2026.
The restructuring comes during a turbulent period for the company, which was once Europe’s most valuable publicly traded firm. In the past year, Novo Nordisk has replaced its chief executive, issued a sharp profit warning, and seen its share price fall by 60 percent. The company is now under pressure to adapt as rivals expand their presence in the lucrative obesity drug market.
A year ago, Novo Nordisk was still in expansion mode, hiring more staff, building new production facilities, and benefiting from surging demand for Ozempic and Wegovy. But its market dominance has eroded as Eli Lilly introduced competing drugs and generic manufacturers pushed forward with cheaper alternatives. Investors have also reacted poorly to recent clinical trial results, raising doubts about the company’s pipeline.
The new chief executive, Maziar Mike Doustdar, was appointed last month with a mandate to accelerate growth. Analysts say the company has been slow to adjust its marketing and sales strategies toward direct-to-consumer channels, a key factor in maintaining momentum in the obesity market. For much of its history, Novo Nordisk operated as a diabetes-focused insulin provider, but the broad consumer appeal of its weight-loss drugs has forced a shift in strategy.
In announcing the cuts, the company said it would simplify its organizational structure to improve decision-making and agility. The savings will be redirected to research, commercial operations, and manufacturing. Novo Nordisk also confirmed that the restructuring will bring a one-off cost of 8 billion kroner this year, further weighing on profits. The company lowered its 2025 operating profit growth forecast to a range of 4 to 10 percent, down six percentage points from guidance issued just a month ago.
The news had a short-term positive effect on investor sentiment. Shares rose 3 percent in Copenhagen trading on Wednesday morning, suggesting some optimism that the overhaul could stabilize the company.
Despite its recent setbacks, Novo Nordisk retains a strong position in the GLP-1 drug segment that transformed its profile. Whether the cost-cutting plan and new leadership can restore the company’s lead in an increasingly competitive sector remains to be seen.