Ozempic Maker Novo Nordisk to Cut 9,000 Jobs Amid Rising Competition
Novo Nordisk, the Danish pharmaceutical company behind blockbuster weight-loss drugs Ozempic and Wegovy, has announced plans to cut 9,000 jobs, representing 11% of its global workforce. The move comes just weeks after the firm warned of slowing profit growth as cheaper rival products enter the booming weight-loss drug market.
The layoffs mark the first major decision by new CEO Mike Doustdar, who took over in May 2025 following the departure of long-time chief executive Lars Fruergaard Jørgensen. Doustdar said the company must adapt to a rapidly changing market.
“Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well,” he said in a statement.
Cost-Cutting Strategy
Novo Nordisk plans to reduce costs by 8 billion Danish kroner (£927 million) by the end of 2026. The company said discussions with affected employees will begin in the coming months in accordance with local labor laws, with more details expected when it reports earnings on November 5.
Doustdar acknowledged the human impact of the restructuring, saying:
“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.”
Intensifying Rivalry With Eli Lilly
The announcement comes as Novo Nordisk faces mounting competition from Eli Lilly, whose diabetes and weight-loss drug Mounjaro has been gaining traction globally. Eli Lilly recently announced a 170% price hike for Mounjaro in the UK, prompting pharmacies to stockpile supplies and leaving some patients struggling to access the drug.
While Eli Lilly offered UK suppliers discounted deals to soften the blow for consumers starting in September, the price increase reflects a broader trend of rising costs across the sector.
Market Outlook
Novo Nordisk’s July forecast signaled a slowdown in revenue and profit growth, despite the unprecedented global demand for weight-loss drugs following the pandemic. Demand for treatments like Wegovy has surged as more people seek medical solutions for obesity, a trend accelerated by lifestyle changes during COVID-19 lockdowns.
Both Wegovy and Mounjaro are weekly injectable treatments that suppress appetite by mimicking a hormone that signals fullness. Mounjaro also impacts metabolism, offering additional benefits for weight regulation. However, the drugs are not without side effects, with common issues including nausea, constipation, and diarrhea.
Industry Impact
Analysts say Novo Nordisk’s restructuring signals the intense competition ahead in the weight-loss drug market, which has become one of the most lucrative sectors in global pharmaceuticals.
The company’s financial results in November are expected to shed light on how deeply the growing rivalry and market pressures are affecting its bottom line.
