Ozempic manufacturer to slash 9,000 jobs worldwide

EUROPEAN pharmaceutical giant Novo Nordisk plans to cut over 10% of its global workforce, as competition intensifies in the fast-growing market for diabetes and obesity treatments.

The cuts – 5,000 of which will take place in its native Denmark – is part of the Ozempic manufacturer’s plan to free up around £927m (US$1.3bn) by the end of 2026, relocating resources towards R&D and expanding its manufacturing capacity.

Demand for obesity medication has surged in recent years, with investment banks forecasting the market could reach US$150bn by 2035.

Novo Nordisk has been manufacturing treatments for serious chronic diseases for more than 100 years and has a history of treating diabetes. The company currently has around 78,400 employees across 170 countries.

Competition

Novo Nordisk faces stiff competition from Eli Lilly, whose obesity drug Mounjaro was recently discounted through a UK pricing deal.

Ozempic and Mounjaro are commonly used to treat type 2 diabetes by helping manage blood sugar levels. They work by increasing the body’s levels of incretins – hormones that boost insulin production and lower glucose.

The price cap would make the highest dose of Mounjaro £247.50, significantly more than the cost of Ozempic, reported to be around £180. Despite the price gap, Eli Lilly’s drug holds an edge in the UK by being approved for weight loss, unlike Ozempic.

On-off restructuring

Novo Nordisk says the job cuts are a “one-off” negative impact of its restructuring. Mike Doustdar, the CEO of

Novo Nordisk, said: “It is always difficult to see talented and valued colleagues go, but we are convinced that this is the right thing to do for the long-term success of Novo Nordisk.”

He added: “By realigning our resources now, we will be able to prioritise investments to drive sustainable growth and future innovation for the millions of patients with chronic diseases globally, particularly in diabetes and obesity.”

The company says it will be in conversation with affected employees over the next few months, with cost-saving measures to begin immediately.