Novo Nordisk to cut 9,000 jobs to focus on diabetes and obesity

Novo Nordisk announced on Wednesday that it will cut about 9,000 jobs worldwide, or roughly 11 to 11.5 percent of its 78,400-strong workforce, as the Danish drugmaker restructures to sharpen its focus on diabetes and obesity treatments amid intensifying competition. The company said about 5,000 of the reductions will take place in Denmark and that the layoffs are part of a broader transformation intended to simplify the organization and speed decision making.

The company said the workforce reduction is expected to deliver roughly 8 billion Danish kroner in annualized savings by the end of 2026, equivalent to about 1.25 billion euros. Novo also warned the restructuring will generate substantial one-off costs that will hit this year’s profit. In connection with the plan the company lowered its operating profit growth forecast to between 4 and 10 percent for the year, down from an earlier range of 10 to 16 percent, citing the restructuring charges.

Mike Doustdar, who took over as chief executive last month, framed the cuts as necessary to make Novo Nordisk more agile in a market that has shifted rapidly. Our markets are evolving, particularly in obesity, as it has become more...