Novo Nordisk has announced a sweeping restructuring plan that will see 9,000 jobs eliminated worldwide by the end of 2026. The cuts represent about 11 per cent of the Danish drugmaker’s global workforce of 78,400 employees.
The company expects the move to save around $1.3 billion while redirecting resources toward growth in diabetes and obesity treatments.
The restructuring is aimed at making the company leaner and more agile. The changes are expected to simplify operations, speed up decision-making, and allow greater focus on high-impact areas such as research and development. Around 5,000 of the job losses will take place in Denmark, where the company is headquartered. A global hiring freeze for non-critical roles, announced last month, had already signalled major changes.
The shake-up comes at a challenging time. Novo’s best-known products, Wegovy for weight loss and Ozempic for diabetes, are facing slower sales growth and increased competition in the US market. Rival Eli Lilly has gained ground in the obesity segment, intensifying pressure on Novo to defend its market share.
This is the third time the company has cut its profit forecast this year, reflecting tougher conditions in its largest market. The leadership change last month, with Mike Doustdar taking over as CEO, has added urgency to the company’s transformation strategy.
Despite the painful layoffs, Novo Nordisk says its mission remains focused on strengthening its leadership in diabetes and obesity, expanding patient access worldwide, and continuing its fight against serious chronic diseases. The company believes the restructuring will position it better for long-term growth in an increasingly competitive pharmaceutical landscape.
