Novo Nordisk to layoff 11% of global workforce

In a major restructuring drive, Danish drug major Novo Nordisk on Wednesday announced plans to slash 9,000 jobs or 11 per cent of its global workforce and save ($1.3 billion) by the end of 2026.

The company, in a statement, said that with the restructuring, it expects to simplify, improve decision-making speed, and reallocate resources toward growth opportunities in diabetes and obesity.

Battling rising pressure from US rival Eli Lilly, the maker of blockbuster weight-loss drug Wegovy, announced its third cut of the year to its profit forecast.

The company’s Wegovy and its diabetes treatment Ozempic are reportedly losing market share and slow sales growth, especially in the US market. "Our markets are evolving, particularly in obesity, as it has become more competitive and consumer driven. Our company must evolve as well," CEO Mike Doustdar, who only took the helm last month, said in the statement.

"This means instilling an increased performance-based culture, deploying our resources ever more effectively, and prioritising investment where it will have the most impact – behind our leading therapy areas," he added.