Novo Nordisk axes 9,000 jobs amid shift to diabetes and obesity focus
- Novo Nordisk announced a plan to cut approximately 9,000 jobs globally, including 5,000 in Denmark.
- The cuts are part of a strategy to enhance focus on the company's growth opportunities in diabetes and obesity.
- The job losses are expected to incur a one-off cost of $1.26 billion, but the company's stock rose by 4.1% after the announcement.
On September 10, 2025, Novo Nordisk, a leading Danish healthcare company, revealed significant plans to reduce its workforce as it pivots towards enhancing its diabetes and obesity treatment sectors. The decision comes as part of a broader strategy to streamline operations and improve decision-making processes within the company. The pharmaceutical industry, especially concerning obesity, has become increasingly competitive, leading Novo Nordisk to reevaluate its resource allocation to foster growth in its core therapeutic areas. The job cuts will affect approximately 9,000 positions worldwide, which constitutes nearly 11.5% of its total workforce of 78,400 employees. In Denmark, the company's home country, approximately 5,000 jobs will be eliminated. The CEO, Mike Doustdar, indicated that this restructuring aims to create a performance-driven culture within the company and prioritize investments that would yield substantial benefits in the long run. This shift occurs following multiple reports and market analyses indicating a decrease in operational profit growth projections. The company has revised its expectations, now forecasting operational profit growth between 4% and 10% at constant exchange rates, a significant drop from the previously anticipated growth of 10% to 16% reported during the second quarter. Doustdar, who took over leadership mere weeks before this announcement, emphasized the need for the company to evolve alongside the changing market landscape. Investors responded positively to the news, with Novo Nordisk's stock surging by 4.1% shortly after the announcement. This indicates ongoing confidence in the company's strategy despite the impending job losses and the associated costs. Executives hope that optimizing resource allocation will ultimately enhance business resilience and position Novo Nordisk to capitalize on future opportunities, especially as trends in obesity management evolve. The decision marks a pivotal moment for the company as it commits to a path of transformation amid rising competition in the pharmaceutical industry.