Novo Nordisk (NYSE:NVO) has announced plans to reduce its global workforce by around 9,000 roles, roughly 12% of its 78,400 employees, as part of a wide-ranging company overhaul aimed at sharpening focus on its core obesity and diabetes treatments.
The Danish drugmaker stated that the job cuts will result in a one-time cost of approximately $1.3 billion, which will impact its 2025 operating profit growth, now forecasted at 4% to 10%, down from 10% to 16% previously.
About 5,000 of the affected roles are based in Denmark. The move marks the first major initiative under new CEO Maziar Mike Doustdar, who took over in August following a leadership shake-up.
The company is facing growing competition in the weight-loss market, especially in the US, and has been grappling with supply chain disruptions. Novo said it aims to increase efficiency and invest where it can make the biggest impact.