Novo Nordisk, the company behind popular weight-loss drugs Ozempic and Wegovy, announced Wednesday that it will cut about 9,000 jobs worldwide.
The layoffs come as the company faces rising competition in the global obesity and diabetes market.
According to FoxBusiness, the cuts represent more than 11% of Novo Nordisk's 78,400 employees, with around 5,000 job losses in Denmark, where the company is based.
The decision comes as the company works to simplify operations and shift more resources toward its core focus areas: obesity and diabetes treatments.
"Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well," said CEO Mike Doustdar in a statement.
The company said the job reductions will affect different areas, including staff roles and headquarters functions. Employees will begin receiving notifications in the coming months.
Breaking News: Novo Nordisk, the drugmaker behind Ozempic and other weight loss and diabetes drugs, said it would cut 9,000 jobs as it seeks to lower costs and revitalize growth. https://t.co/AD46KG3DD0
— The New York Times (@nytimes) September 10, 2025
Read more: Wegovy Maker Novo Nordisk Dismisses Fears of Falling Behind Eli Lilly, Sees Strong Growth Ahead
Layoffs at Novo Nordisk to Save $1.25B for Obesity Drug Investment
This move follows soaring demand for obesity medications and growing pressure from rivals, especially Eli Lilly, which has seen major success with its weight-loss drugs Zepbound and Mounjaro.
Both contain the same active ingredient, tirzepatide, and have helped boost Lilly's quarterly revenue to $10.4 billion.
Novo Nordisk also noted that it's facing challenges from compounding pharmacies offering cheaper versions of its products, which have taken a toll on profits.
As a result, the company said it needs to act now to remain competitive and improve how it operates.
The company expects to save about $1.25 billion a year by 2026 from the layoffs, CNN said.
Those savings will be reinvested into research, product development, and manufacturing to strengthen its position in the obesity and diabetes market.
"This means instilling an increased performance-based culture and prioritizing investment where it will have the most impact," Doustdar said.
In a note to investors, analysts at UBS said the layoffs reflect an effort to "reduce complexity" after a period of rapid employee growth.
They also suggested that investors may wait for more details before fully backing Novo Nordisk's new strategy.
Despite the news, Novo Nordisk's stock rose 2.5% in afternoon trading in Copenhagen.
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