Novo Nordisk, Maker of "Wegovy," Launches Large-Scale Restructuring ... 9,000 Jobs to Be Cut

11% of Global Workforce to Be Cut; 5,000 Jobs Lost in Denmark
Rapid Growth of Weight-Loss Drug Wegovy
Fierce Competition in the Obesity Treatment Market

Denmark-based pharmaceutical company Novo Nordisk, known for its weight-loss drug Wegovy, has begun a large-scale restructuring.

According to the Wall Street Journal (WSJ), Novo Nordisk announced on September 10 (local time) that it plans to cut approximately 9,000 jobs. This reduction amounts to about 11% of its global workforce of 78,400 employees. Of these, around 5,000 positions are expected to be eliminated in Denmark.

The company explained that this measure is intended to focus its capabilities on the growth of its obesity and diabetes treatment sectors.

Novo Nordisk aims to achieve annual cost savings of about 8 billion Danish kroner (approximately 1.74 trillion won) by the end of 2026. The company plans to reinvest these savings into research and development (R&D) for diabetes and obesity treatments.

Chief Executive Officer Mike Doustdar stated, "Market competition is intensifying, especially in the obesity treatment sector, and the industry is shifting toward consumer-centric approaches." He added, "We need to strengthen our performance-driven culture, allocate resources more efficiently, and prioritize investments in our core therapeutic areas."

After launching the GLP-1 (glucagon-like peptide-1) class obesity treatment Wegovy in 2021, Novo Nordisk experienced rapid growth fueled by the popularity of weight-loss drugs. The company expanded its production capacity for Wegovy and Ozempic and hired thousands of new employees to meet surging demand. As a result, the organization became bloated and cost burdens increased.

Recently, as competition in the obesity treatment market has intensified, there are assessments that Novo Nordisk's dominance is being challenged. Although Novo Nordisk remains the leader in the obesity treatment market, its market share has been declining due to the spread of generic drugs and aggressive moves by competitor Eli Lilly.