Novo Nordisk to cut 9,000 jobs

Company Overview - Novo Nordisk's shares initially rose by 4% in pre-market trading but later declined after the announcement of cutting 9,000 jobs, which represents over 11% of its workforce [1] - The company's stock is currently down more than 60% from its all-time high in June 2024 [1] Market Sentiment - Bernstein upgraded Novo Nordisk to an outperformer with a price target suggesting over 50% upside, indicating that the obesity growth potential is currently underappreciated [2] - The market has reacted negatively to the job cuts, reflecting a need for the company to demonstrate its ability to manage costs and reallocate funds towards R&D [2][4] Competitive Landscape - Novo Nordisk's stock performance has reverted to levels seen three years ago, indicating a significant unwinding of previous gains [3] - Competitor Eli Lilly has performed better relatively, suggesting that Novo Nordisk may be losing its competitive edge in new products and efficacy [3] Strategic Changes - The CEO's swift restructuring plan, initiated in July, includes significant headcount reductions aimed at cutting costs and reallocating resources [4] - Over the past five years, Novo Nordisk's headcount increased by approximately 80%, indicating a rapid scaling effort that did not fully meet market demand [4][5]