• Novo Nordisk to eliminate 9,000 jobs, approximately 11% of its workforce, amid rising competitive pressures.
• Major cuts include 5,000 positions in Denmark; estimated annual savings of 8 billion Danish crowns (approximately $1.3 billion).
• The company’s profitability outlook has been downgraded for the third time in a year.
• The restructuring aims to improve decision-making speed and focus resources on diabetes and obesity treatments.
• Shares have lost nearly 46% of their value this year due to intensified market competition.

Danish pharmaceutical giant Novo Nordisk has announced it will cut about 9,000 jobs, or 11% of its workforce, as part of a restructuring effort to combat increasing competition in the obesity drug market led by U.S. rival Eli Lilly. The move aims to save approximately 8 billion Danish crowns ($1.3 billion) annually, as the company seeks to refocus its resources towards growth in diabetes and obesity treatments, according to Reuters and India Times.

The layoffs will significantly impact the company's operations, with around 5,000 jobs cut in Denmark. This restructuring follows a global hiring freeze announced last month for non-essential roles, aiming to streamline operations and enhance decision-making speed. CEO Mike Doustdar, who took over leadership last month, emphasized the need for adaptation in an increasingly consumer-driven obesity market, stating, "Our company must evolve as well," according to Channel News Asia and Newsweek.

In conjunction with the job cuts, Novo Nordisk issued its third profit warning of the year, revising its operating profit growth forecast downwards to between 4% and 10% from a previous range of 10% to 16%. Analysts have indicated that higher competition, particularly from Eli Lilly’s products, has negatively impacted Novo's market position. Investor confidence has waned, leading to a dramatic decrease in market capitalization, which plummeted from approximately $650 billion last year to around $181 billion, as detailed by BBC and Reuters.

This significant workforce reduction, marking one of the largest in Denmark's history, reflects both the challenges faced in the market and the company's efforts to reallocate its resources effectively. Industry experts suggest that Novo Nordisk underestimated the level of competition and complexity of the consumer-driven obesity market, leading to a miscalculated rapid expansion in recent years, according to Al Jazeera and CBS News.