Layoffs News: Wegovy maker Novo Nordisk to cut 9,000 jobs across the globe: Here's why

Core Viewpoint - Novo Nordisk A/S is implementing a significant restructuring plan that includes cutting 9,000 jobs, or 11% of its workforce, in response to increased competition and to refocus on growth opportunities in diabetes and obesity treatments [1][2][3]. Group 1: Job Cuts and Restructuring - The job cuts are part of a company-wide transformation aimed at simplifying the organization, improving decision-making speed, and reallocating resources [2][3]. - The layoffs will impact 5,000 workers in Denmark alone [3]. Group 2: Financial Implications - The restructuring plan is expected to save 8 billion Danish crowns (approximately $1.25 billion) annually [2]. - Novo Nordisk has lowered its earnings forecast for the third time this year, now expecting operating profit growth between 4% and 10%, down from an earlier range of 19% to 27% [3]. Group 3: Competitive Landscape - The company faces stiff competition from US rival Eli Lilly and other similar drugs, which has intensified in the obesity treatment market [1][5]. - The US Food and Drug Administration's temporary allowance for pharmacies to create compound versions of Ozempic and Wegovy has further complicated the competitive landscape [6]. Group 4: Leadership and Strategic Direction - Novo Nordisk's new CEO, Mike Doustdar, emphasizes the need for an increased performance-based culture and effective resource deployment to prioritize investments in leading therapy areas [4].