Ozempic maker to cut 9,000 jobs amid rising competition

Novo Nordisk, maker of Wegovy and Ozempic, will cut 11 per cent of staff after issuing a profit warning amid strong competition from US rival Eli Lilly.

The Danish drugmaker’s decision affects 9,000 of its 78,400 employees, with 5,000 cuts in Denmark, as sales of Wegovy have slowed and cheaper generic versions have entered the market.

The wider sector also faces threats of US tariffs.

Novo Nordisk’s market value has fallen by nearly US$100bn since a profit warning in early August.

The job cuts are the first major move by new chief executive Mike Doustdar, who succeeded Lars Fruergaard Jørgensen last month after his seven-year tenure.

Jørgensen had already hinted at possible layoffs.

Doustdar said: “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 that we can be faster and more agile.”

The company expects the cuts to save 8bn kroner (£930m) annually by 2026 but said they will cost 8bn kroner in one-off restructuring charges.

It has lowered its operating profit growth forecast for this year from 10–16 per cent to 4–10 per cent.

Novo Nordisk has also been hit by weak results from its new obesity drug CagriSema, which failed to beat Eli Lilly’s Mounjaro in a late-stage weight-loss trial.

Sales have also been dented by “compounding” in the US, where pharmacies mix weight-loss drugs from ingredients.

The practice, permitted during shortages, was recently ended by US regulators.

Jørgensen said last month the generic, copycat market was “equal size to our business” and that compounded Wegovy was sold at a “much lower price point”.

Along with other European pharmaceutical groups, Novo Nordisk also faces repeated threats from Donald Trump to impose tariffs on imports from drugmakers that do not move some production to the US.

Susannah Streeter, analyst at Hargreaves Lansdown, said: “Novo Nordisk, which had grown fat on the spoils of its weight loss drugs, has been feeling the effects of rivals marching into the space.

“Uncertainty over American tariffs has also been a risk that continues to cast a shadow over the industry. By becoming a leaner machine, Novo hopes to redirect more funding to R&D to bolster its pipeline of products.”

Over the past five years Novo Nordisk expanded rapidly, lifting headcount by 75 per cent as sales of its GLP-1 drugs — weekly injections that mimic a hormone regulating blood sugar and appetite — surged worldwide.

Studies suggest Eli Lilly’s Mounjaro, a weekly injection like Wegovy, is more effective at reducing weight.

Both Mounjaro and Wegovy can be prescribed by NHS doctors to patients with high clinical need.

Novo Nordisk’s Ozempic, mainly for type 2 diabetes, is also available on the NHS.