LONDON — Novo Nordisk, under new leadership and in need of a boost, said Wednesday it would trim 9,000 jobs — roughly 11% of its workforce — as it seeks to remake itself for a more competitive obesity drug market.
The cuts are designed to save the Danish firm $1.26 billion a year by the end of 2026, and are part of what Novo described as a broader transformation that will simplify the company’s organization, speed up its decision making, and push more resources toward building growth in its diabetes and obesity businesses.
Roughly 5,000 of the job losses will be in Denmark. Novo has more than 78,000 employees.
“It is always difficult to see talented and valued colleagues go, but we are convinced that this is the right thing to do for the long-term success of Novo Nordisk,” Mike Doustdar, who took over as CEO last month, said in a statement. “We need a shift in our mindset and approach so we can be faster and more agile.”
Citing restructuring costs, Novo lowered its operating profit growth for the year to 4% to 10% at constant exchange rates. The company has lowered its outlook several times this year.
Acknowledging the impact of the layoffs on staff, Doustdar also said in a video posted on his LinkedIn that “every krone will be reinvested into growth, advancing R&D, expanding manufacturing, and improving commercial execution and patient access worldwide.”
Novo has been a leader in the booming GLP-1 market for obesity and diabetes drugs, with its medicines Wegovy and Ozempic gaining early footholds as other companies scrambled to catch up. It experienced massive and rapid growth, but also struggled to manufacture enough supply to meet the huge demand for Wegovy.
More recently, Novo has seen rival Eli Lilly surge ahead with its medicine Zepbound in the U.S. obesity market, and has hit stumbles with its pipeline as it seeks to develop next-generation weight loss drugs.
Novo has also blamed compounded versions of its drug semaglutide — the key ingredient in Ozempic and Wegovy — for stunting its growth in the U.S. market.
STAT has previously reported that one reason former employees think Novo has fallen behind is because of a conservative and cautious culture that has limited its research and marketing strategies, though Novo executives have challenged that view.
Novo share prices have fallen by more than half over the past year. The company in May announced its previous CEO, Lars Fruergaard Jørgensen, would step down, citing its performance struggles.
In his statement, Doustdar said Novo needed to instill a “performance-based culture.”
“As the global leader in obesity and diabetes, Novo Nordisk delivers life-changing products for patients worldwide,” he said. “But our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well.”
