Novo Nordisk, a notable Danish pharmaceutical company and the maker of the popular weight-loss drug Wegovy, announced on Wednesday that it will cut 9,000 jobs. Among these, 5,000 positions are expected to be eliminated in Denmark alone. This restructuring aims to sharpen the company’s focus on opportunities in obesity and diabetes medications.
This workforce reduction, representing about 11% of its total employees, is part of an effort to simplify operations and make quicker decisions in a competitive market for obesity treatments. The company anticipates saving around 8 billion Danish krone, approximately $1.25 billion, by the end of 2026. These savings will be reinvested into diabetes and obesity research and development.
Novo Nordisk, known for both Wegovy and Ozempic, a diabetes medication that also aids weight loss, stated that the job cuts will start immediately. Affected employees will be informed over the coming months, depending on local labor regulations. The company, headquartered in Bagsvaerd, near Copenhagen, currently employs about 78,400 individuals.
Mike Doustdar, the company’s President and CEO, emphasized the necessity for the company to adapt to the evolving, consumer-driven markets, particularly in obesity. He noted that such changes will enhance performance and improve resource allocation, ensuring investments are directed towards the most impactful therapies.
Doustdar took over as CEO in May, following the departure of Lars Fruergaard Jorgensen amid concerns about falling share prices and increasing competition, notably from Eli Lilly’s recent weight-loss drugs. At one point, Novo Nordisk’s market capitalization soared to greater heights than Denmark’s entire annual GDP, representing the company’s significant value in Europe.
In summary, while employee layoffs are never easy, this strategic move demonstrates Novo Nordisk’s commitment to focusing on its key therapeutic areas in a competitive landscape.
