Novo Nordisk, the Danish pharmaceutical giant behind blockbuster weight-loss drugs Wegovy and Ozempic, announced on Wednesday it will cut 9,000 jobs, or about 11 percent of its global workforce, as competition in the obesity drug market intensifies.
The move marks the first major restructuring by new chief executive Mike Doustdar, who took over in May after the departure of long-time leader Lars Fruergaard Jørgensen. Doustdar said the layoffs were necessary to streamline operations and reduce costs in a sector that has become increasingly consumer-driven.
“Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well,” Doustdar said in a statement. He acknowledged the difficulty of the decision but stressed it was crucial to ensure the company’s long-term success.
The job cuts come just weeks after Novo Nordisk warned that its full-year sales and profits would not rise as quickly as previously expected. The firm now aims to cut costs by 8 billion Danish kroner (£927 million) by the end of next year. Discussions with affected employees will begin in the coming months in line with local labour laws, with further details expected in the company’s 5 November financial report.
The weight-loss drug market has expanded rapidly in recent years, boosted by global health trends and heightened demand following the Covid-19 pandemic. However, Novo Nordisk has come under pressure from Eli Lilly, whose drug Mounjaro has emerged as a formidable rival.
Eli Lilly recently announced significant price increases for Mounjaro in the UK, with the cost of a month’s supply of the highest dose rising from £122 to £330. The company said the change brought UK prices closer to those in Europe and the United States. However, a discounted deal offered to suppliers is expected to soften the impact for patients when the new pricing takes effect in September.
Both Wegovy and Mounjaro belong to a new class of injectable medicines originally developed to treat diabetes but now widely used for weight management. Wegovy, based on semaglutide, and Mounjaro, based on tirzepatide, work by mimicking hormones that suppress appetite, while Mounjaro also helps regulate metabolism and energy balance. The treatments, administered via weekly injections, have been hailed as breakthroughs but often come with side effects such as nausea, constipation, and diarrhoea.
Despite strong global demand, the growing presence of copycat drugs and rival products has eroded Novo Nordisk’s dominance in the sector. Investors have been closely watching how the company responds to these challenges, particularly after a series of disappointing updates earlier this year.
Shares in Novo Nordisk rose slightly in Copenhagen following the announcement, as investors welcomed the company’s cost-cutting measures despite concerns about the long-term competitive landscape.
