Novo Nordisk, the Danish pharmaceutical giant known for its blockbuster weight-loss medication Wegovy, has started notifying employees in the United States about upcoming layoffs, according to a Reuters report. This move marks the beginning of a broader effort to trim costs and restructure operations globally, driven by intense competition with US rival Eli Lilly.
According to an internal email and two insiders familiar with the situation cited by Reuters, the US layoffs commenced on Tuesday and will continue through late next week. This timeline had not been publicly disclosed before. The staff members slated for layoffs span a wide range of departments, including human resources, clinical development, rare diseases, medical and regulatory affairs, legal, marketing, sales, finance, and public affairs, among others.
While Reuters could not verify the exact number of affected employees, Novo Nordisk’s global workforce reduction plan involves cutting approximately 9,000 jobs under the direction of new CEO Mike Doustdar, who assumed his role in August. This is part of a broader restructuring effort that already saw the company accelerate layoffs in Denmark, targeting 5,000 positions.
Strategic Shift Under New Leadership
The workforce cuts are a component of Doustdar’s strategy to sharpen Novo Nordisk’s focus on obesity and diabetes treatments while improving commercial execution. His leadership follows the departure of former CEO Lars Fruergaard Jorgensen, amid a backdrop of declining share prices and slower growth in Wegovy sales.
In a previous statement, the company emphasised that “the global process would take time and its highest priority is to support our employees.” Despite the challenges, Novo Nordisk’s shares have risen about 6 per cent since the restructuring announcement on September 10, signalling some investor confidence in the new direction, the report said.
Competitive Pressures And Market Context
Novo Nordisk’s cost-cutting initiative reflects broader pressures within the pharmaceutical industry, especially in the lucrative obesity and diabetes treatment markets. With Eli Lilly aggressively competing, Novo is positioning itself for a leaner, more focused operation aimed at regaining momentum. As the layoffs unfold in the US, it remains to be seen how these changes will impact the company’s operational capabilities and market share in the months ahead.