Copenhagen, September 10, 2025 — Novo Nordisk, the pharmaceutical giant behind the blockbuster drugs Ozempic and Wegovy, announced a sweeping plan to cut about 9,000 jobs worldwide, including 5,000 positions in Denmark, as part of a major restructuring effort. The cuts amount to roughly 11–12% of its global workforce.
Restructuring for Efficiency
The company said the move is aimed at simplifying operations, speeding up decision-making, and fostering a stronger performance-based culture. The restructuring will cost an estimated 9 billion Danish kroner in the short term, but Novo expects to save 8 billion kroner annually once the plan is fully in place. Some of these savings are expected to start showing up as early as the fourth quarter of this year.
Profit Forecast Slashed
Alongside the announcement, Novo Nordisk lowered its 2025 operating profit growth forecast to 4–10%, a sharp drop from its earlier outlook of 10–16%. The downgrade reflects not only the costs of restructuring but also weaker-than-expected sales in its core business areas.
New Leadership, New Strategy
New CEO Mike Doustdar, who took over this year amid a steep decline in the company’s market value, framed the layoffs as a painful but necessary step. He emphasized the need to reallocate resources toward areas of highest strategic importance, particularly diabetes and obesity treatments.
Rising Competition
The move comes as Novo faces growing pressure from rivals, especially Eli Lilly, whose drug Mounjaro has been gaining momentum in the obesity market. At the same time, the arrival of cheaper generic versions of diabetes drugs has eroded Novo’s pricing power. These challenges have contributed to a nearly 46% drop in Novo’s market capitalization since the start of the year.
Looking Forward
While the cuts are expected to make the company leaner and more competitive, some industry analysts warn that trimming too aggressively could risk slowing innovation, especially in research and development. Still, investors appeared cautiously optimistic, with Novo’s shares posting a modest rebound after the announcement.
Leave a Reply