"On September 10, Novo Nordisk shared in a press release that it intends to nix 9,000 positions out of its global workforce of 78,400. The company cited a more competitive obesity market, as well as a "recent slowdown in growth," as two of the main reasons driving the move to reduce "organisational complexity and costs." "As the global leader in obesity and diabetes, Novo Nordisk delivers life-changing products for patients worldwide," Mike Doustdar, Novo Nordisk president and CEO, said in the release. "But our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well.""
"In the wake of the announcement, Novo Nordisk's share price held relatively steady. However, the company has been losing steam more broadly over the past few months: Since this time last year, its stock has declined by 58%. Novo Nordisk is facing increased competition on several fronts, including from providers offering compounded versions of its drugs (which it's actively fighting in court) and from fellow pharmaceutical giant Eli Lilly, Novo Nordisk's main rival and purveyor of the weight-loss medications Zepbound and Mounjaro."
Novo Nordisk plans to cut 9,000 positions, about 11% of its 78,400 workforce. The company cited increased competition in the obesity market and a recent slowdown in growth as reasons for reducing organizational complexity and costs. Markets, particularly obesity, have become more competitive and consumer-driven, requiring company evolution. The company's stock has declined 58% year-over-year, though the share price held relatively steady after the announcement. Competition includes providers offering compounded, non-FDA approved semaglutide versions and rival Eli Lilly's weight-loss medications Zepbound and Mounjaro. The company is fighting compounded versions in court and is cutting jobs to lower costs and simplify operations.
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