Novo Nordisk makes drastic job cuts to confront obesity drug competition

In Denmark, on a Wednesday in September 2025, Danish pharmaceutical company Novo Nordisk announced it would reduce its workforce by 9,000 employees, with 5,000 of those job cuts occurring in Denmark. This restructuring effort is part of the company's strategic initiative to sharpen its focus on growth opportunities in the obesity and diabetes medication markets. The decision reflects an organizational shift aimed at reducing complexity and expediting decision-making processes amid increasing competition in the obesity drug sector. The cutbacks represent approximately 11% of Novo Nordisk's total workforce of 78,400 employees, which indicates a significant reallocation of resources within the company. The leadership at Novo Nordisk, under the guidance of new CEO Mike Doustdar, aims to redirect approximately 8 billion Danish krone, or about $1.25 billion, in savings towards investments in diabetes and obesity-related research and development. The company has faced rigorous competition, especially from new weight-loss drugs developed by rival pharmaceutical company Eli Lilly, creating an urgent need for strategic reassessment. Despite historical success following the introduction of its weight-loss drug Wegovy and diabetes treatment Ozempic, Novo Nordisk's stock market performance faltered recently. This decline prompted the leadership transition from former CEO Lars Fruergaard Jorgensen. Doustdar emphasized the importance of adapting to evolving market conditions, especially as consumer demand in obesity treatment continues to grow more competitive and driven by consumer choice. In making these job cuts, Novo Nordisk aims to cultivate a more performance-based culture while optimizing resource deployment to ensure maximum impact in the market. Job cut implementation is set to commence immediately, with the notification process for affected employees occurring in accordance with local labor regulations over the upcoming months.