Novo Nordisk's Major Restructuring Amid Rising Competition

Novo Nordisk, the pharmaceutical giant behind Wegovy, announced a significant restructuring plan on Wednesday to combat fierce competition from U.S. rival Eli Lilly. The Danish company plans to cut 9,000 jobs, approximately 11.5% of its workforce, to save 8 billion Danish crowns annually.

In an effort to simplify its organisation and enhance decision-making speed, Novo Nordisk aims to reallocate resources to capitalise on growth opportunities in the diabetes and obesity markets. The company, also known for its Ozempic diabetes treatment, had already initiated a global hiring freeze for non-critical roles in August.

The restructuring will incur one-off costs, including impairment charges, while the company also predicts substantial savings by the fourth quarter. As Novo Nordisk navigates market dynamics, especially in obesity where competition intensifies, it expects its operations to adapt to changing consumer demands.

(With inputs from agencies.)