Ozempic Maker Novo Nordisk cuts 9,000 jobs amid increased competition | Pharmaceutical Industry

The manufacturers of weight loss pills and diabetes drugs Ozempic and Wegovy are profit warnings issued by U.S. rival Eli Lilly, cutting 9,000 jobs.

Novo Nordisk’s decision to cut 11% of its global workforce comes as sales of diabetes drugs, including Ozempic, slows sharply Fierce competition Mounjaro Jabs from Eli Lilly and the threat of U.S. tariffs.

The Danish drugmaker, whose thrives on his GLP-1 diabetes and obesity drugs in recent years, has made it the most valuable company in Europe, said 5,000 layoffs will be in its home country, Denmark.

The company’s market value has fallen by more than 60% over the past year, and the cuts are estimated to save 8 billion Denmark Krona (£930 million) annually in 2026.

Novo Nordisk said layoffs would cost Crona’s restructuring expenses of 8 billion and reduce its operating profit growth this year from 10-16% to 4-10%.

“It’s always hard to see talented and valuable colleagues going, but we firmly believe that this is the right choice for Novo Nordisk’s long-term success,” said Mike Doustdar, who took over as CEO in July. “We need to change our mindset and approach so that we can be faster and more agile.”

Novo Nordisk, with 78,400 employees worldwide, was also hit by the clinical outcomes of its new obesity drug, Cagrisema. Mounjaro who failed to beat Eli Lilly lose weight.

Novo Nordisk’s employee base has increased by 75% over the past five years as the company’s performance soars due to the global popularity of its Wegovy and Ozempic weight loss drugs.

Doustdar said the company has traditionally been a strong player in diabetes treatment, and he said it needs to develop into a market where obesity drugs have become “competitive and consumer-driven”.

“This means instilling a performance-based culture that deploys our resources more effectively and prioritizes its most impactful investment in leading therapeutic areas,” he said.