Novo Nordisk, the Danish pharmaceutical giant and maker of the blockbuster obesity drug Wegovy and the diabetes treatment Ozempic, has announced a sweeping restructuring that will result in 9,000 job cuts worldwide. Of these, 5,000 positions will be eliminated in Denmark, making it the largest corporate layoff in Denmark’s history, according to Reuters: Moreover, these significant Novo Nordisk job cuts are part of a broader trend in the industry.
The Novo Nordisk layoffs represent around 11% of the company’s global workforce. Executives stated the decision was aimed at simplifying the organisation, improving efficiency, and reallocating resources toward high-growth areas such as diabetes and obesity treatments. The restructuring is expected to save 8 billion Danish crowns ($1.25 billion) annually, though one-off costs are projected to reach 9 billion crowns.
The recent announcement of Novo Nordisk job cuts has raised concerns among employees and stakeholders regarding the future of the company.
Market Pressures Behind the Job Cuts
The Novo Nordisk job cuts come at a time when the company faces mounting market pressures. U.S. rival Eli Lilly has overtaken Novo in obesity drug prescriptions with its treatment Zepbound, which recently surpassed Wegovy in the American market. Bloomberg highlighted this competitive shift:
Additionally, compounded copycat versions of Wegovy and Ozempic have eroded sales in the United States. Investors have also grown wary after multiple profit warnings. Novo Nordisk shares have dropped nearly 46% since January, slashing its market capitalization to about $181 billion—down from a peak of $650 billion in 2023. Since mid-2023, the company has lost nearly $450 billion in value. Financial Times reported that this reflects both market volatility and the fierce battle in the obesity drug sector:
https://www.ft.com/content/novo-nordisk-market-value-slump
CEO’s First Major Move
Industry analysts describe the layoffs as the first major step by new CEO Mike Doustdar, who took over in August. “This is the new CEO’s first major move to simplify Novo’s structure and redirect resources toward growth in diabetes and obesity,” said Michael Novod, head of equity research at Nordea Bank.
Doustdar stressed that the Novo Nordisk layoffs reflect a need to streamline operations, strengthen commercial execution, and reinvest savings into innovation. “We need to have the best-in-class launches, especially as competition is increasing. We want to make sure we don’t have to spare a dime,” he said.
Financial Impact and Forecast
Novo Nordisk has already issued three profit warnings in 2025. Its latest forecast shows operating profit growth between 4% and 10%, significantly lower than the earlier estimate of 19% to 27%. The 2024 forecast was also cut to 4% to 10% from the initial 10% to 16%.
The Novo Nordisk job cuts will reverse much of the company’s recent workforce expansion. From 2020 to 2024, its staff nearly doubled from 43,700 to 78,400, driven largely by booming demand for Wegovy. Analysts argue the expansion created inefficiency, with Redburn Atlantic’s Simon Baker noting that layoffs will reset staffing levels to early 2024.
Denmark’s Reaction
Despite the unprecedented scale of the Novo Nordisk layoffs in Denmark, the national reaction has been measured. Finance Minister Nicolai Wammen stated that Denmark’s economy is strong enough to absorb the cuts. Nykredit economist Palle Sorensen added that 5,000 lost jobs equal just two months of national job growth, according to Reuters:
https://www.reuters.com/markets/europe/denmark-economy-remains-strong-despite-novo-nordisk-layoffs-2025-09-11/
While the layoffs will impact thousands of families, experts believe the Danish labor market is robust enough to manage the transition.
Long-Term Outlook
Despite near-term disruption, Novo Nordisk is committed to reinvesting savings from the job cuts into research, manufacturing, and patient programs. A key growth initiative is the launch of an oral version of Wegovy, expected to strengthen its obesity treatment portfolio.
The company also continues to explore wider applications for its GLP-1 pipeline, central to its diabetes and obesity strategy.
Market reaction to the Novo Nordisk layoffs was mixed. Shares fell 3% on the news but later rebounded by more than 2% in Copenhagen trading. This indicates investors acknowledge the short-term pain of layoffs but see potential in a leaner, more focused Novo Nordisk.
Conclusion
The Novo Nordisk layoffs—totaling 9,000 worldwide—mark not only the company’s largest workforce reduction but also the biggest layoff in Denmark’s history. While the cuts highlight immediate financial pressures and growing competition, they also reflect a strategic shift under new leadership. The key question remains whether the Novo Nordisk job cuts will stabilize operations and secure the company’s leadership in the global obesity and diabetes drug markets.
