Novo Nordisk plans 9,000 job cuts in overhaul to manage competition

Novo Nordisk AS on Wednesday said it will reduce its workforce as part of a "company-wide transformation" to focus on its diabetes and weight-loss offering.

The Copenhagen-based pharmaceutical firm and maker of Ozempic and Wegovy expects to dismiss 9,000 of its 78,400 employees, including 5,000 redundancies in Denmark.

Novo estimated that the move will generate around DKK8 billion, or USD1.25 billion, in annualised savings by the end of 2026, against DKK8 billion in net one-off restructuring costs. Novo expects around DKK9 billion in costs in the third quarter of 2025, offset by savings of DKK1 billion in the fourth quarter.

In 2025, the overhaul is anticipated to reduce growth in full-year adjusted operating profit at a constant exchange rate by 6 percentage points compared to guidance issued in August. The firm has lowered the growth outlook for earnings before interest and tax to a range of 4% to 10%, down from 10% to 16% previously, which was already revised down from a prior range of 16% to 24%. Novo now expects full-year depreciation, amortisation and impairment losses of DKK21 billion, up from the previous DKK17 billion.

The plan is effective immediately, with Novo noting it will "communicate with affected employees over the next few months, pending negotiations as per local legal labour market requirements."

The overhaul is meant to quicken decision-making and allow the firm to "reallocate resources" towards Wegovy, a diabetes management drug which has gained popularity as a weight-loss method.

"The transformation reflects the company’s commitment to meet rising global demand while also competing in a more dynamic and consumer-driven obesity market, as evidenced by the recent slowdown in growth," Novo said on Wednesday.

The company went on to say the overhaul would addressed "increased organisational complexity and costs" which had resulted from upscaling in the past few years.

Chief Executive Mike Doustdar added that Novo will need to adopt a more "performance-based culture" to adapt to a "more competitive and consumer-driven" weight-loss drug market.

In the six months that ended June 30, Novo's operating profit was up 29% at CER. Net profit rose 22% to DKK55.54 billion, around USD8.64 billion, from DKK45.46 billion a year prior.

Still, US firm Eli Lilly & Co, maker of orforglipron, another drug targeting diabetes and weight-loss, posted a 91% jump in net income in the second quarter of 2025 to USD5.66 billion from USD2.97 billion a year earlier.