Novo Nordisk, the Danish pharmaceutical giant known for its popular weight-loss drugs Ozempic and Wegovy, announced plans to lay off approximately 9,000 employees worldwide. The company said the move is part of a larger effort to streamline operations and focus resources on growth areas such as obesity and diabetes treatments.
The layoffs represent 11 per cent of Novo Nordisk’s global workforce, which currently totals 78,400 employees. The company expects the changes to generate savings of C$1.7 billion by the end of 2026.
Novo Nordisk CEO Mike Doustdar said the restructuring is necessary because the weight-loss and diabetes drug markets are rapidly evolving.
“Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven,” Doustdar said. “Our company must evolve as well. This means instilling an increased performance-based culture, deploying our resources more effectively, and prioritising investment where it will have the most impact – behind our leading therapy areas.”
The company plans to reinvest the savings from the layoffs into its drug pipeline and launches in new markets, including expanding access to obesity treatments.
Novo Nordisk has faced increasing competition in the obesity and diabetes markets. U.S.-based Eli Lilly has overtaken the company in weekly prescriptions for weight-loss drugs with its product Zepbound, surpassing Wegovy earlier this year. However, Wegovy prescriptions have recently begun to rise, narrowing Eli Lilly’s lead.
The company is also dealing with a wave of copycat drugs, which has made the market more challenging. These pressures have contributed to the decision to restructure and focus resources on its core areas of growth.
This restructuring is the first major move by the new CEO, aimed at simplifying Novo Nordisk’s structure. The company intends to boost efficiency, improve output, and meet rising demand for its products, including the upcoming pill form of Wegovy.
Michael Novod, head of equity research for Denmark at Nordea Bank, said, “This is the new CEO’s first major move to simplify Novo’s structure and redirect resources toward growth in diabetes and obesity.”
The layoffs will be companywide, impacting staff areas, headquarters, and other departments. Novo Nordisk said employees affected by the layoffs will be contacted over the next few months.
The company also emphasized that the move will allow it to prioritize investments in its leading therapy areas while reducing operational costs.
In a recent call with Danish media, Doustdar said the company plans to use the savings from layoffs to strengthen its commercial strategy. Novo Nordisk has been increasingly selling drugs through consumer platforms such as telehealth, and this strategy is expected to help the company remain competitive in a crowded market.
By focusing on obesity and diabetes, Novo Nordisk aims to retain leadership in these high-demand areas while preparing for new launches and expansion into additional markets.
While the layoffs will affect thousands of employees, Novo Nordisk stressed the importance of adapting to a changing industry landscape. The company hopes the restructuring will create a more streamlined and efficient organization capable of meeting global demand and maintaining its competitive edge.
Employees affected will be informed individually over the coming months, and the company said it remains committed to supporting staff through this transition.
Novo Nordisk’s announcement of 9,000 layoffs marks a significant step in its restructuring and modernization plan. The company’s focus on efficiency, strategic investment, and growth in obesity and diabetes reflects the challenges it faces in a highly competitive market.
With rising competition, the introduction of copycat drugs, and changing consumer demands, Novo Nordisk aims to strengthen its operations, expand its product offerings, and secure its position as a leader in weight-loss and diabetes treatments.
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