Novo Nordisk layoffs are set to impact 11 per cent of its global workforce as the Danish pharmaceutical giant adjusts to rising competition in the weight-loss drug market and slower growth. The company has also reduced its profit forecast for 2025.
The firm confirmed that 9,000 positions will be eliminated across 80 countries. Around 5,000 of these roles are in Denmark, where Novo Nordisk is headquartered. The workforce reduction is part of a strategic restructuring plan designed to save DKr8bn annually by 2026.
Chief executive Mike Doustdar, who assumed the role in July, stated the changes are necessary to maintain the company’s long-term competitiveness.
“We need a shift in our mindset and approach so we can be faster and more agile. This means instilling a performance-based culture and prioritising investment behind our leading therapy areas,” Doustdar said.
Novo Nordisk is known for producing the weight-loss drugs Wegovy and Ozempic. Both have grown in popularity in recent years, contributing to a nearly 75 per cent increase in global headcount over five years. Wegovy, in particular, gained attention on social media and from public figures, boosting sales and positioning the company as one of Europe’s most valuable listed firms.
The company will incur DKr8bn in restructuring costs this year. As a result, Novo Nordisk lowered its operating profit growth forecast from 10–16 per cent to 4–10 per cent. Shares rose 2.5 per cent in early trading to DKr347.
The United States market has posed challenges for Novo, as competitors like Eli Lilly gain traction with Mounjaro and Zepbound treatments. This competition has slowed Novo’s revenue growth and forced strategic realignments.
Analyst Søren Løntoft Hansen of Sydbank commented that the layoffs indicate a broader shift from hypergrowth to slower growth. “They are doing this to reduce complexity in the organisation that has come with this growth,” Hansen said.
Novo Nordisk employs more than 78,000 staff worldwide, including 65 in Finland. The company has not confirmed whether Finnish roles will be affected. A spokesperson said country-specific impacts are still being assessed.
According to the company, the restructuring aims to make operations leaner and more focused, especially as the obesity drug sector becomes more consumer-oriented. Doustdar emphasised aligning resources with future therapeutic priorities rather than relying on past successes.
Investors have raised concerns over the timing and scale of the cuts. Grégoire Biollaz, a senior investment manager at Pictet, noted that the restructuring needs to be rational and clearly explained to stakeholders.
Novo Nordisk’s previous market highs followed the rapid adoption of Ozempic and Wegovy, originally designed for diabetes and later adapted for weight management. However, rising costs and a recent trial setback have contributed to the company losing two-thirds of its market value since early 2024.
Analysts at BMO Capital Markets described the restructuring as overdue. “The status quo was not delivering for patients or shareholders. This is one step, but we need to see concrete results,” the firm said.
In Denmark, where Novo Nordisk is a major employer, the announcement has sparked concern over national economic effects. Slower growth projections and rising inflation could amplify the impact of job losses. Denmark’s labour ministry has not yet commented.
