Novo Nordisk Cuts 13,000 Jobs Amid Fierce Competition in Weight-Loss Drug Market

Novo Nordisk, the maker of popular anti-obesity drug Wegovy and diabetes medication Ozempic, has reduced its workforce by 13,000 employees over the past year. The company stated that 9,000 jobs were eliminated directly, while another 4,000 positions were left vacant and not refilled as part of a broader cost-cutting initiative.

This workforce reduction comes as CEO Mike Doustdar seeks to reorient the Danish firm amidst intense competition in the lucrative weight-loss drug market. Novo Nordisk has seen its market share challenged by rival Eli Lilly, whose Mounjaro and Zepbound medications are gaining traction.

Novo Nordisk's stock has experienced a significant decline, falling over 70 percent from its peak in mid-2024. The company is also working to address investor concerns regarding potential patent expirations for semaglutide, the active ingredient in Ozempic and Wegovy, which are anticipated in the early 2030s.

Doustdar, who recently oversaw the removal of 'Nordisk' from the company's name, has outlined an ambitious strategy. The company aims to launch more than five new blockbuster drugs by 2030, projecting new sales of approximately £17 billion in 2035. Novo Nordisk also intends to reach over 60 million patients globally by 2030 and expand manufacturing capacity tenfold to supply 15 million patients with oral obesity therapies by the end of the decade.

Despite these strategic plans, the recent update did not fully alleviate investor anxieties, as reflected in a 9 percent drop in share price in early trading following the announcement. Analysts note that while Novo Nordisk is attempting to rebuild investor confidence, the competitive landscape has shifted significantly, with Eli Lilly currently holding a stronger market position and perceived momentum in its obesity drug pipeline.

"There is still plenty of runway in obesity," noted Derren Nathan, head of equity research at Hargreaves Lansdown. "Patients are behaving more like consumers, so convenience, tolerability and ease of use matter alongside headline efficacy. The share price reaction shows this remains an evolution of the investment case, not a revolution."