Novo Nordisk to Cut 9,000 Jobs as Competition and Tariff Risks Mount

Novo Nordisk, the Danish manufacturer of Ozempic and Wegovy, announced plans to cut 9,000 jobs — about 11% of its global workforce — as it faces intensifying competition and slowing sales. The decision comes after the company issued a profit warning, citing challenges from US rival Eli Lilly’s Mounjaro and cheaper generic alternatives.
About 5,000 of the layoffs will occur in Denmark, with the company estimating annual savings of 8 billion kroner by 2026. However, the restructuring will also cost 8 billion kroner upfront, prompting Novo Nordisk to lower its operating profit growth forecast for this year to 4%-10%.
The move marks the first major decision under new CEO Mike Doustdar, who stressed the need for agility in adapting to market pressures. Novo Nordisk has also been hit by weaker-than-expected results from its new obesity drug CagriSema, as well as the end of US “compounding” practices that had provided cheaper alternatives to its drugs.
The company, once Europe’s most valuable by market capitalization, has lost nearly $100 billion in value since early August. Analysts warn that rising US tariff threats and aggressive competition could further pressure European pharmaceutical firms, even as Novo Nordisk aims to redirect resources into research and development to sustain long-term growth.