U.S. Workforce Reductions Underway
Novo Nordisk has initiated a substantial round of layoffs in the United States, according to reports from internal company communications and sources familiar with the situation. The Danish pharmaceutical company, known for its popular weight-loss medication Wegovy, reportedly began notifying affected U.S. employees this week, with the process expected to continue through late next week.
The timeframe for these layoffs had not been previously disclosed publicly, according to the sources. This development forms part of the company’s broader global restructuring strategy under new leadership, as Novo Nordisk faces intensified competition from U.S. rival Eli Lilly in the lucrative weight-loss and diabetes drug markets.
Comprehensive Departmental Impact
According to the internal schedule reviewed by reporters, the workforce reductions span numerous critical departments within the organization. Sources indicate affected areas include human resources, clinical development, rare diseases, medical and regulatory affairs, legal, ethics and compliance, marketing and sales, finance, and public affairs, among others.
The report states that Reuters was unable to confirm the exact number of U.S. employees affected by these cuts. However, analysts suggest this forms part of Novo Nordisk’s previously announced plan to eliminate approximately 9,000 positions globally as part of its restructuring initiative.
Leadership Transition and Strategic Shifts
The layoffs coincide with new CEO Mike Doustdar’s efforts to restore investor confidence through what he describes as a tighter focus on commercial execution and core therapeutic areas of obesity and diabetes. Doustdar assumed leadership in August following the departure of long-time CEO Lars Fruergaard Jorgensen, reportedly prompted by declining share prices and slowing growth in Wegovy sales.
According to the analysis, Novo Nordisk’s shares have shown positive movement since the restructuring announcement on September 10, with approximately 6% growth observed. The company’s communication via email and other channels reportedly emphasizes that the global restructuring process will require time to implement fully.
Global Context and Employee Support
These U.S. layoffs follow accelerated workforce reductions in the company’s home market of Denmark, where Novo Nordisk plans to eliminate approximately 5,000 positions. The sources, who requested anonymity due to the confidential nature of the information, revealed that the company has stated its “highest priority is to support our employees” throughout this transition period.
Novo Nordisk reportedly did not immediately respond to requests for additional comment regarding the specific U.S. layoffs. The company’s restructuring comes amid significant industry developments, including Waymo’s European expansion, Walmart’s AI partnerships, Stellantis’ manufacturing investments, Oracle’s energy initiatives, and gaming industry expansions.
Reporting by Maggie Fick in London and Dan Levine in San Francisco for Reuters. Editing by Mark Potter. Additional context provided by industry analysts and sources familiar with the matter.
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