Novo Nordisk Announces Major Job Cuts Amid Profit Forecast Downgrade

2025-09-11 companies

Copenhagen, Wednesday, 10 September 2025.
Novo Nordisk plans to cut 9,000 jobs, affecting 11.5% of its workforce, to save $1.25 billion amid competitive pressures and reduced profit forecasts.

The Strategic Shift

Novo Nordisk, a leading global pharmaceutical company known for its diabetes and weight-loss treatments, has announced a significant restructuring plan that involves cutting approximately 9,000 jobs worldwide. This decision, which affects about 11.5% of its workforce, aims to save the company an estimated $1.25 billion by the end of 2026. The move comes as part of a broader strategy to enhance operational efficiency and focus on its core areas of diabetes and obesity treatments [1][2].

Driving Factors Behind the Cuts

The announcement follows a period of intense competition in the weight-loss drug market, particularly from U.S. pharmaceutical giant Eli Lilly, which has gained significant market share with its diabetes and weight-loss treatments. Novo Nordisk’s restructuring is seen as a necessary response to these competitive pressures. The company has also revised its operating profit growth forecast for 2025, lowering it from a previous range of 10%-16% to 4%-10%, reflecting the anticipated costs of restructuring [3][4].

Leadership and Market Reactions

Under the new leadership of CEO Mike Doustdar, who assumed his role in August 2025, Novo Nordisk is implementing changes to streamline its operations and reallocate resources to areas with the highest growth potential. Doustdar has emphasized the need for a performance-based culture and strategic investments in the company’s leading therapy areas. The restructuring and job cuts are part of Doustdar’s vision to maintain Novo Nordisk’s leadership in diabetes and obesity care [5][6].

Impact and Future Outlook

The company’s announcement has had a mixed impact on its stock performance. Despite the job cuts, U.S.-listed shares of Novo Nordisk saw a slight increase of about 2% in recent trading. However, overall, the company’s shares have lost about a third of their value this year due to the competitive landscape and prior market challenges. As Novo Nordisk continues with its restructuring efforts, analysts suggest that further profit warnings may be possible, and the company’s ability to regain investor confidence will be crucial for its long-term success [7][8].

Sources

job cuts profit forecast