Maker of Ozempic, Wegovy Slashes 9K Jobs

Novo Nordisk, the Danish pharmaceutical giant known for manufacturing Ozempic and Wegovy, has announced plans to slash about 9,000 jobs—roughly 11% of its global workforce—in an effort to streamline operations and rein in costs. The company says the cuts will take place immediately, and that staffers will be informed according to local labor laws, per the AP. The move comes on the heels of a rocky year, in which the company's share price tumbled 60%, it swapped out its CEO, and it issued a profit warning, notes the New York Times.

• Of the job cuts, 5,000 will hit Denmark. The layoffs are expected to save Novo Nordisk $1.3 billion annually by the end of 2026. The company says the restructuring, which will trigger a one-off cost this year, is aimed at making the organization leaner and better equipped to handle the increasingly competitive—and consumer-driven—obesity drug market.

• Just a year ago, Novo Nordisk was riding high as Europe's most valuable public company, expanding its workforce and production. But competitors like Eli Lilly have since made inroads in the weight loss drug market, and Novo's slower pivot to direct-to-consumer sales hasn't helped. Disappointing trial results for some pipeline drugs have also left investors cold.
• The company, long a major player in diabetes care, was caught off guard by the explosive interest in its weight-loss offerings. Now it's shifting more muscle into marketing Ozempic and Wegovy directly to patients. Novo Nordisk hopes a trimmed-down structure will speed up decision-making and free up resources for R&D and commercial growth.
• New CEO Maziar Mike Doustdar, brought in for his reputation as a rapid-growth specialist, says Novo Nordisk needs to move faster and adopt a more agile mindset to keep up. "It is always difficult to see talented and valued colleagues go, but we are convinced that this is the right thing to do for the long-term success of Novo Nordisk," Doustdar said, per the BBC.
• Investors greeted the news with cautious optimism: Company shares rose 3% Wednesday morning after the announcement, per the Times.