Novo Nordisk slashes 9,000 jobs to slim down in fierce weight-loss drug battle

Core Viewpoint - Novo Nordisk is cutting 9,000 jobs to reignite growth and address competition from Eli Lilly and copycat drugs, marking the largest layoff in Denmark's history [1][2]. Group 1: Restructuring and Financial Impact - The restructuring is expected to save 8 billion Danish crowns ($1.25 billion) annually as Novo Nordisk seeks to revive its fortunes under new leadership [2]. - The company has faced stalled sales growth and a significant drop in market capitalization, losing $450 billion since mid-2022, which has negatively impacted the local economy [3][6]. - Novo Nordisk issued its third profit warning of the year, citing 9 billion crowns in one-off costs related to the restructuring [3]. Group 2: Market Dynamics and Competition - The obesity market has proven to be more consumer-driven than anticipated, leading to organizational complexities for Novo Nordisk [4]. - The company’s rapid expansion, which nearly doubled its workforce in five years, has backfired, prompting the layoffs that will return headcount to early 2024 levels [5]. - Analysts predict a fourth profit warning when the company reports third-quarter results in November, raising doubts about meeting sales guidance [7]. Group 3: Future Strategies - Novo Nordisk is aiming to boost output to meet rising demand for its products while preparing a pill version of Wegovy and exploring additional health benefits of its GLP-1 portfolio [8].