Novo Nordisk to slash 9,000 jobs amid competition, supply chain issues

(Sharecast News) - Novo Nordisk announced plans to cut 9,000 jobs, around 11% of its global workforce, on Wednesday, as part of a sweeping restructuring aimed at restoring growth in its obesity and diabetes business. The Danish drugmaker, best known for its Wegovy and Ozempic treatments, said roughly 5,000 of the reductions would be in Denmark.

It came as Novo faces mounting pressure from US rival Eli Lilly, whose Mounjaro injection has gained market share in the fast-growing weight-loss sector.

Novo had also been affected by supply chain issues, copycat versions of its drugs in the US, and disappointing trial results for its next-generation obesity treatment, CagriSema.

The restructuring was expected to cost DKK 8bn (£0.93bn) in charges but deliver annual savings of the same amount by 2026.

As a result, Novo lowered its forecast for 2025 operating profit growth to between 4% and 10%, from 10% to 16%.

Shares rose modestly on the news after recent heavy losses, with the company's market value having fallen more than 60% in the past year from a peak of about $650bn.

CEO Mike Doustdar, who took over in July, said the overhaul was designed to simplify the business and improve decision-making.

"Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven," he said.

"Our company must evolve as well."

Doustdar added that Novo would focus on instilling a performance-based culture and prioritising investment in its leading therapy areas.

Novo's headcount had grown by 75% over the past five years as demand for its weight-loss and diabetes drugs surged, making it Europe's most valuable company at one point.

But with growth slowing and competition intensifying, the job cuts marked one of the first major steps by Doustdar to reset the company's strategy.

At 1033 CEST (0933 BST), shares in Novo Nordisk were up 2.45% at DKK 347.

Reporting by Josh White for Sharecast.com.