Novo Nordisk cuts 9,000 jobs amid tough competition in obesity market

In Denmark, on September 10, 2025, Novo Nordisk, a prominent pharmaceutical company, announced a significant reduction in its workforce as part of a strategic move to address heightened competition in the obesity drug market. This decision involves cutting approximately 9,000 jobs, which accounts for 11% of the company's total workforce. Out of these reductions, around 5,000 jobs will be affected in Denmark, though the company has not specified where the remaining 4,000 job cuts will take place. The recent job cuts are a response to the evolving landscape of obesity treatments, which has become increasingly competitive and consumer-oriented. The company specifically cited that its growth has slowed due to a "more dynamic and consumer-driven obesity market". This competitive atmosphere stems from the emergence of new players in the market, including Eli Lilly, which has launched its own weight-loss medications. Novo Nordisk is known for its successful medications such as Wegovy and Ozempic, both of which are derived from the same active ingredient, semaglutide. As a result of the competitive pressure, Novo's executives, including President and CEO Mike Doustdar, emphasized the need for the company to adapt in order to maintain its leading position and drive performance. Furthermore, the announced job cuts are part of a broader effort to streamline operations and redirect investment into core therapy areas, namely diabetes and obesity. By cutting 9,000 jobs, the company expects to save approximately $1.25 billion by the end of 2026. These savings are intended to be reinvested into research and development to enhance their offerings in diabetes and obesity treatment. This strategic shift is being driven by the increasing need for Novo Nordisk to respond swiftly to the changing dynamics of the weight-loss and diabetes medication markets. Implementation of the job reductions will begin immediately, with affected employees being informed over the coming months, in compliance with local labor regulations. The stock market reacted positively to this announcement, with Novo Nordisk shares rising slightly as investors may be viewing the cuts as a necessary measure to enhance profitability and address market challenges. The leadership change at Novo Nordisk, with Mike Doustdar taking on the CEO role following the departure of Lars Fruergaard Jorgensen, has also added a layer of urgency to the company’s need to adapt and evolve amidst market challenges.