The maker of blockbuster drug Ozempic has unveiled drastic plans that could reshape the company and rattle global markets.
Thousands of jobs are set to go as the pharmaceutical giant battles fierce competition, political pressure and a dramatic collapse in its share price.
The company behind weight-loss drugs Ozempic and Wegovy is cutting 9,000 jobs worldwide — more than one in ten of its staff — in a major cost-saving drive.
Novo Nordisk says the shake-up is needed as it comes under growing pressure from rival Eli Lilly, which has been winning market share with its own drug Mounjaro.
Trials suggest Mounjaro helps people lose around 21 per cent of their body weight over 18 months, compared with lower results from Ozempic and Wegovy.
The Danish firm is also facing political heat in the US, with Donald Trump calling on drugmakers to slash prices for Americans and take a tougher line with what he described as “foreign freeloading nations.”
Novo Nordisk’s share price has tumbled almost 50 per cent since January, wiping nearly $470 billion off its value after briefly becoming Europe’s most valuable company last year.
Ozempic maker to slash 9,000 jobs after £470billion share price collapse
| GETTYMike Doustdar, who assumed the chief executive role just last month, justified the drastic measures by citing the evolving marketplace. "Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well," he stated.
The restructuring will claim approximately 5,000 positions in Denmark alone, where the company maintains its headquarters and employs a substantial portion of its 78,400-strong global workforce.
Whilst the company anticipates savings of 1 billion crowns in the fourth quarter, annual cost reductions are projected to reach 8 billion crowns by the end of next year.
The restructuring will claim approximately 5,000 positions in Denmark alone
| Ricardo Rubio/Europa Press via GETTYThe restructuring announcement has sent ripples through Denmark's economy, where officials have slashed growth forecasts for 2025 from three per cent to 1.4 per cent, partly attributable to Novo Nordisk's struggles.
Danish pension funds have suffered substantial losses as billions invested in the pharmaceutical company have evaporated alongside its share price collapse.
Mr Doustdar said: "Sometimes the hardest decisions are the right ones for the future we're building.
Ozempic is available on the NHS as a type 2 diabetes treatment,
| GETTY"I'm confident that this is the right thing to do for the long-term success of Novo Nordisk."
The company has revised its operating profit growth expectations for this year to between four and 10 per cent, down from the previous forecast of 10 to 16 per cent.