Novo Nordisk to cut 9,000 jobs: Ozempic maker to reduce workforce by 11%; refocus on diabetes and obesity treatments

Danish pharmaceutical giant Novo Nordisk on Wednesday announced plans to reduce its global workforce by 11 percent, eliminating 9,000 positions, including 5,000 in Denmark.

The move aims to save eight billion kroner ($1.3 billion) as competition intensifies for its anti-obesity treatments Ozempic and Wegovy, as reported by AFP.

The company also lowered its earnings forecast for the third time this year, projecting operating profit growth between four and 10 percent, down from the earlier range of 10-16 percent. The announcement helped lift Novo Nordisk’s shares by more than three percent during midday trading in Copenhagen.

The company described the restructuring as part of 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."

Novo Nordisk’s weight-loss injections had previously boosted its market position, driving the workforce expansion from 43,700 employees in 2020 to 78,400 currently. The company’s growth significantly contributed to Denmark’s economic performance in 2023.

Chief Executive Mike Doustdar, who succeeded Lars Fruergaard Jorgensen in August, emphasised the need for adaptation in increasingly competitive markets. Palle Sorensen, chief economist at Nykredit bank, noted the domestic impact: the 5,000 job cuts in Denmark are "equivalent to two months of job growth in Denmark."

The company faces rising competition from US-based Eli Lilly’s obesity treatments. Production constraints also led to temporary FDA authorisation for pharmacies to compound Ozempic and Wegovy, which expired on May 22.

Ozempic, an injectable anti-diabetic drug, gained attention for its weight-loss effects on social media, while Wegovy, containing the same active ingredient in a different dosage, is marketed specifically for weight loss. Both drugs use GLP-1 hormone analogues to regulate blood glucose and appetite.

Market analysts suggest management may have underestimated competition and misread their market position. The company’s transformation plan is aimed at addressing rising global demand while navigating a rapidly evolving obesity treatment market.