Novo Nordisk announces 9,000 job cuts

Novo Nordisk said on Sept. 10, 2025 that it will eliminate about 9,000 positions worldwide, roughly 11.5% of its 78,400 jobs, in what the company called a "company-wide transformation to simplify its organisation, improve the speed of decision-making, and reallocate resources towards the company's growth opportunities in diabetes and obesity" ^[1]. About 5,000 of the cuts are expected in Denmark, the company's home country ^[1][3].

The Danish drugmaker makes semaglutide, sold as Ozempic for type 2 diabetes, Wegovy for weight management and Rybelsus as a tablet. It said the restructuring should save about 8 billion Danish kroner — roughly $1.25 billion to $1.3 billion — per year by the end of 2026 ^[2][3][5]. Novo expects about 1 billion kroner of that in the fourth quarter alone ^[3].

The cuts carry an immediate cost. Novo said the reduction would bring a one-off charge of 8 billion kroner, about $1.26 billion ^[1][5]. Reuters put the total one-off costs tied to the overhaul at 9 billion kroner, noting the announcement was Novo's third profit warning of the year ^[3]. Because of those charges, Novo lowered its 2025 operating profit growth forecast to 4% to 10% at constant exchange rates, down from the 10% to 16% range it gave with second-quarter results on Aug. 6 ^[1][2][5]. At the start of the year, the company had forecast 19% to 27% ^[3].

The restructuring is the first major move by CEO Maziar Mike Doustdar, who took over last month after the ouster of Lars Fruergaard Jørgensen ^[1][2]. "Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven," Doustdar said ^[1]. Layoffs begin immediately, with affected employees receiving notice "over the next few months," subject to local labor negotiations ^[2][5]. Novo declined to say which business units will be hit ^[3][5]. Amid the restructuring, the company also told employees they must return to the office starting Jan. 1 ^[7].

Why it matters for patients

The backdrop is competition, not a supply crunch. Eli Lilly's tirzepatide shot Zepbound passed Wegovy in weekly U.S. prescriptions earlier in 2025, although Reuters reported Wegovy prescriptions started growing faster over the summer, narrowing the gap ^[2][3]. On his final earnings call, Jørgensen said the U.S. market for compounded semaglutide is now "equal" in size to Novo's own GLP-1 business ^[2]. One analyst estimated that of about 3 million Americans on these medicines, roughly 1 million are on compounded versions ^[4]. Novo has filed more than 130 lawsuits against compounders, with little effect on its bottom line so far ^[5].

Novo says money saved will be redirected, not just banked. The company reaffirmed plans to reinvest savings in research and development, manufacturing expansion and improving global patient access ^[3]. Doustdar told Danish media the savings would go into the drug pipeline and obesity launches in new markets, including selling through consumer channels such as telehealth: "We need to have the best-in-class launches, especially as competition is increasing. We want to make sure we don't have to spare a dime" ^[3]. Novo is also preparing a pill version of Wegovy ^[3].

For people filling prescriptions now, no changes to Wegovy, Ozempic or Rybelsus availability or pricing were announced alongside the job cuts, and which functions will shrink has not been disclosed ^[3][5]. One analyst view is that Novo's lost market share means it now has more supply than demand, with the bottleneck being whether insurers and health systems will pay ^[4].

What happens next

Layoff notices roll out over the coming months as local labor rules allow ^[2][5]. Novo reports third-quarter results in November; Bank of America analysts said they expect a fourth profit warning then, doubting the company can hit the top end of its sales guidance ^[3]. Looking further out, semaglutide is scheduled for U.S. federal price negotiations in 2027 under the mechanism created by the Biden administration, and Novo's patents in various countries begin expiring from 2028, opening the door to generic competition ^[4].

Novo shares were up 2.1% at 1315 GMT on the day of the announcement after initially falling 3%; CNBC reported the stock up 4.1% in late London morning trading ^[1][3]. The stock had fallen nearly 46% since the start of the year, leaving a market value near $181 billion versus a peak of about $650 billion last year ^[3].