Novo Nordisk Layoffs to Hit 11% of Workforce in $1.25B Savings Plan

Novo Nordisk, the Danish drugmaker behind Ozempic and Wegovy, will cut 9,000 jobs, about 11% of its global workforce. This decision marks the first major action by new CEO Mike Doustdar, who took over in August 2025.

The company stated that the layoffs are part of a savings plan to cut 8 billion Danish kroner (about $1.25 billion USD) in costs by the end of 2026. About 5,000 of the affected positions will be in Denmark, the home country of Novo Nordisk. The company said that the savings will be redirected to diabetes and obesity programs, including commercial initiatives and R&D.

Doustdar said the company’s rapid growth had added complexity and costs, and that Novo Nordisk must adapt to a more competitive, consumer-driven market.

This decision follows a profit warning issued earlier this summer. Novo Nordisk lowered its forecast for full-year profit growth to 4-10%, down from an earlier estimate of 10-16%. In July, the company also indicated that its sales and profits would not grow as quickly as expected. They cited pressures in the increasingly competitive obesity drug market.

Novo Nordisk will begin consultations with employees in the coming months, in line with labor laws, and provide further details on November 5 when it reports earnings.

Novo Nordisk Current Share Price:

Competitive Pressures in the Obesity Drug Market

Novo Nordisk has faced growing challenges from Eli Lilly. Lilly’s tirzepatide brands, Mounjaro (for diabetes) and Zepbound (for weight loss), have rapidly gained market share since their approvals in 2022 and 2023, respectively. Novo Nordisk’s semaglutide is sold under the names Ozempic (for diabetes) and Wegovy (for weight loss).

GlobalData noted that Novo Nordisk has introduced steep discounts in the US for Ozempic and Wegovy to prevent patients from switching to alternatives.

Drugs in this class, known as GLP-1 RAs, were developed for diabetes but have since become popular for weight management. They mimic a hormone that regulates blood sugar and appetite.

Eli Lilly has also adjusted pricing in the UK. The cost of Mounjaro’s highest dose recently increased from around $165.25 to about $447 (£122 to £330) per month. Pharmacies reportedly stockpiled the drug ahead of the increase. However, discounted deals offered to suppliers are expected to limit the impact on patients.

Stock performance has reflected the challenges facing both drugmakers. Novo Nordisk’s shares dropped by 21.7% in late July after it cut its sales outlook, wiping about $70.34 billion from its market value. Eli Lilly, meanwhile, lost 17% of its value by early August 2025, with a single-day fall of 14% tied to disappointing trial results for its oral obesity drug candidate.

Layoffs Across the Life Sciences Industry

In 2025, several other life sciences companies also pursued workforce reductions for various reasons.

Verily cut staff after shutting down its medical devices program to focus on AI and precision health, while Arena BioWorks reduced its workforce by 30% as it moved away from cell and gene therapy research.

Merck announced a multi-year $3 billion cost-saving plan due to weaker drug sales and a pending acquisition. Bayer eliminated 12,000 positions to streamline decision-making under investor pressure. CSL also disclosed plans to lay off 15% of its employees and close 22 US plasma centers to simplify operations and reinvest in priority programs.

Another recent example of restructuring related to the GLP-1 market came from Hims & Hers, which cut around 4% of its workforce in May 2025 after the FDA banned compounded versions of Wegovy.

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