Novo Nordisk to cut 9,000 jobs

Company Performance & Restructuring - Novo Nordisk announced it will cut 9,000 jobs, representing more than 11% of its workforce, to reduce complexity and expenses [1][2] - The restructuring is a swift action taken by the CEO who was put in place in July of this year [4] - Headcount grew by about 80% in 5 years prior to the announced cuts [4] Market Dynamics & Stock Performance - Novo Nordisk's shares were up pre-market but paired gains, and are down more than 60% from their all-time high in June 2024 [1] - Bernstein upgraded Novo Nordisk to an outperformer with a price target indicating more than 50% upside, believing the obesity growth engine is now underappreciated [2] - The market views Novo Nordisk as a "show me story," requiring proof of its potential [2][3] - Eli Lilly is perceived by the market to have an edge in new products and efficacy [3] - The market has shifted from a scarcity story, where there was room for everyone, to a more competitive landscape [4] Industry Impact - Novo Nordisk's performance significantly impacts Denmark's trade deficit and trade flow [5] - The company was scaling to meet market demand, but still couldn't completely meet demand for many years [5]