Novo Nordisk Job Cuts: 9,000 Roles Axed as Pharma Giant Restructures
Danish drugmaker Novo Nordisk, maker of the blockbuster weight-loss drug Wegovy, is embarking on a major restructuring under new CEO Maziar Mike Doustdar.
The plan includes roughly 9,000 Novo Nordisk job cuts, or 11.5% of its global workforce, as the company grapples with slowing growth and intensifying competition.
Key details of the restructuring
- Workforce impact: Around 9,000 roles were cut from 78,400 total employees worldwide, including 5,000 in Denmark.
- Financial cost: One-off charge of 8 billion Danish kroner (~$1.26 billion).
- Profit forecast: Operating profit growth guidance trimmed to 4–10% for 2025, down from 10–16% previously.
- Shares: Stock rose 4.1% in early trading despite the news, suggesting investor approval of cost-cutting moves.
Strategic rationale
The restructuring is aimed at streamlining operations, speeding up decision-making, and channeling resources into Novo’s core franchises of diabetes and obesity care.
CEO Doustdar emphasized the need for a performance-driven culture and disciplined capital allocation, particularly as obesity treatment markets become more consumer-driven and competitive.
The sweeping Novo Nordisk job cuts mark the first major initiative of his tenure.
Market pressures behind the move
- Competition: Eli Lilly’s Mounjaro and Zepbound continue to gain share, pressuring Novo’s Wegovy sales in the U.S.
- Supply chain strain: Production bottlenecks have hampered consistent availability of Wegovy, eroding customer loyalty.
- Pipeline setbacks: Disappointing trial results for obesity candidate CagriSema have weighed on sentiment.
- Pricing environment: A rise in compounded weight-loss drugs in the U.S. adds low-cost competition.
Leadership transition
The shake-up follows the surprise ouster of former CEO Lars Fruergaard Jørgensen in August.
Doustdar, long a company insider, assumed leadership with a mandate to defend Novo’s diabetes and obesity franchises while instilling urgency.
He highlighted three priorities: maintaining leadership in core therapy areas, building a high-performance culture, and realigning costs—priorities that underpin the Novo Nordisk job cuts.
Bottom line
Novo Nordisk is taking drastic action to reestablish momentum in its most profitable franchises.
The announced 9,000 Novo Nordisk job cuts reflect both cost pressures and the need for organizational agility in a rapidly evolving obesity market.
While painful for employees, the move signals to investors that the new CEO is serious about defending market share and restoring growth.
Long-term, Novo’s success will depend not just on cost control but also on supply chain execution, regulatory navigation, and pipeline breakthroughs.
Investors will be watching closely to see whether the restructuring translates into a sustainable competitive advantage.