Wegovy-maker Novo Nordisk cutting 9000 jobs in – Business News
Wegovy-maker Novo Nordisk will cut 9,000 jobs, or about 11.5% of its workforce, in a restructuring to save lots of $1.26 billion yearly, it mentioned on Wednesday, because it battles rising stress from US rival Eli Lilly
“Novo Nordisk today announced a company-wide transformation to simplify its organization, improve the speed of decision-making, and reallocate resources towards the company’s growth opportunities in diabetes and obesity,” it mentioned in a assertion.
The company, which can also be recognized for its Ozempic diabetes therapy, already mentioned in August that it had carried out a international hiring freeze overlaying job roles that weren’t vital for its business.
The workplaces of Novo Nordisk in Bagsvaerd, Denmark on July 14, 2025. REUTERS
Novo, which at present has 78,400 positions globally, mentioned about 5,000 of the job cuts can be in its native Denmark.
“Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well,” newly appointed CEO Mike Doustdar mentioned in the assertion.
“This means instilling an increased performance-based culture, deploying our resources ever more effectively, and prioritizing investment where it will have the most impact – behind our leading therapy areas,” he added.
As half of the restructuring, Novo will report one-off restructuring prices of $1.4 billion in the third quarter, together with impairment prices, but additionally expects $156.9 million of financial savings in the fourth quarter, it mentioned.
Novo mentioned its working revenue growth this yr is now anticipated at between 4% and 10%, down from between 10% and 16% seen final month, altering solely due to the restructuring prices.
Novo, which grew to become Europe’s Most worthy listed company price $650 billion final yr on booming gross sales of Wegovy, is dealing with a pivotal second as the medication loses market share and sees gross sales growth gradual, particularly in the United States.
The company, which can also be recognized for its Ozempic diabetes therapy, already mentioned in August that it had carried out a international hiring freeze overlaying job roles that weren’t vital for its business. REUTERS
Novo Nordisk’s new CEO poses for a picture on the company’s headquarters in Bagsvaerd, Denmark on Aug. 7, 2025. ZUMAPRESS.com
It has warned of far slower growth this yr, in half on account of compounders who’ve been allowed to make copycat medicines based mostly on the identical ingredients as Wegovy on account of shortages.
Investors in July wiped $70 billion off the drugmaker’s market worth after Novo issued a revenue warning and named company veteran Doustdar as its new CEO.
Its shares have fallen almost 46% for the reason that begin of the yr, reducing its market worth to about $181 billion as of Tuesday’s close.
