Novo Nordisk, the Danish pharmaceutical giant behind the obesity drug Wegovy, said on Wednesday it will cut about 9,000 jobs globally in a major restructuring effort, aiming to save 8 billion Danish crowns ($1.26 billion) annually.
The move underscores the growing pressure the company faces from its US rival Eli Lilly as the weight-loss drug market becomes increasingly crowded and competitive.
The company, which currently employs 78,400 people worldwide, said approximately 5,000 of the planned job reductions will be in Denmark.
“Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well,” newly appointed CEO Mike Doustdar said in the statement.
“This means instilling an increased performance-based culture, deploying our resources ever more effectively, and prioritising investment where it will have the most impact – behind our leading therapy areas,” he added.
Costs and financial impact
Novo said restructuring costs of about 9 billion Danish crowns will be incurred in the third quarter of 2025. However, it also expects 1 billion crowns of savings in the fourth quarter, it said.
It also warned that the overhaul would carry a one-off negative impact of around six percentage points on its full-year operating profit growth at constant exchange rates next year.
Novo said its operating profit growth this year is now expected at between 4% and 10%, down from between 10% and 16% seen last month, changing solely due to the restructuring costs.
It also projected depreciation, amortisation, and impairment losses of 21 billion crowns, higher than its earlier estimate of 17 billion crowns.
Growth slowdown weighs on shares
Novo Nordisk, once Europe’s most valuable listed company with a market value of $650 billion in 2023, has seen its growth slow significantly.
Last month, the company warned that revenues would fall well short of earlier forecasts, citing competition from Eli Lilly’s Mounjaro and Zepbound, as well as the rise of cheaper copycat versions of its drugs.
The company’s Copenhagen-listed shares are down nearly 47% so far this year, reflecting investor concerns over the competitive landscape and Novo’s ability to maintain its dominance in the GLP-1 drug segment.
Doustdar’s leadership began on August 7, 2025, following the exit of Lars Fruergaard Jørgensen.
However, the timing of his appointment coincided with a sharp cut to Novo’s sales forecast which has also sent investor confidence tumbling.
Adding to the pressure, Denmark’s government recently lowered its 2025 economic growth forecast to 1.4% from 3%, citing weaker prospects for Novo Nordisk and new US tariffs on Danish exports.
For a company that once outpaced the size of Denmark’s economy, Novo’s latest restructuring marks a critical juncture in its bid to defend market share and restore growth momentum.
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