Novo Nordisk will cut 9,000 jobs as part of a savings plan as the drugmaker fails to grapple with the loss of share in the weight loss and diabetes drug market to rival Eli Lilly.
The workforce reduction, which equates to around 11% of total positions globally, is expected to deliver savings of around Dkr8bn ($1.25bn) by the end of 2026. Around 5,000 of the reductions will come in the company’s home country of Denmark.
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Novo said the savings would be redirected to growth opportunities in diabetes and obesity, including commercial execution initiatives and R&D programmes.
Alongside the job cuts, the pharma company issued a profit warning – cutting its forecast this year from 10%-16% to 4%-10%.
Despite early success, Novo Nordisk has fallen behind in the glucagon-like peptide-1 receptor agonist (GLP-1RA) race, overtaken by Eli Lilly and its asset tirzepatide, sold under the brand names Zepbound and Mounjaro for weight loss and type 2 diabetes, respectively.
Novo’s current struggles strongly contrast with the enthusiasm from eight years ago. The company won US Food and Drug Administration (FDA) approval for Ozempic in 2017, followed by Wegovy in 2021. Sales for the two drugs helped briefly propel Novo to the status of Europe’s most valuable company, but Eli Lilly was hot on its heels, adding market competition through approvals of Mounjaro in 2022 and Zepbound in 2023.
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By GlobalDataDuring mid-2025, Novo Nordisk did not fare well financially, while Eli Lilly’s revenue conversely went from strength to strength. The fortunes of the two companies have been reflected in their share prices. As with the majority of the pharma industry, both drugmakers have seen the impact of economic instability due to US President Donald Trump’s tariffs, but Novo’s has fallen sharply due to slower GLP-1RA sales. Between September 2024 and September 2025, Novo’s stock has fallen 59%, while Eli Lilly’s fell 24%.
Analysis by GlobalData indicates that Novo’s steep discounts to Wegovy and Ozempic in the US are helping stem the flow of patients switching to rival alternatives, but the restructuring plans mean it is evidently not happening quickly enough for the drugmaker.
Despite issuing profit guidance adjustments recently, the workforce cuts are the first major restructuring announced by Novo and demonstrate the tangible pressure being exerted by Eli Lilly.
It is also the first major action overseen by new CEO Mike Doustdar since taking the helm of the company in August 2025. Previous CEO Lars Fruergaard Jørgensen parted ways with Novo in May as the company sought fresh leadership to turn its financial outlook around.
Doustdar said: “Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well.
“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. We need a shift in our mindset and approach so we can be faster and more agile.”
