Novo Nordisk has unveiled a company-wide transformation aimed at simplifying its organisation, accelerating decision-making, and redirecting resources to high-growth areas within diabetes and obesity. The move comes as the company navigates increased competition in the obesity market and seeks to reach millions of untreated patients worldwide.
Strategic Shift in a Competitive Market
With demand for diabetes and obesity treatments continuing to rise, Novo Nordisk faces both opportunity and pressure. The company’s rapid scaling in recent years has added complexity and costs. At the same time, the obesity market is becoming more competitive and consumer-driven. This transformation is designed to strengthen Novo Nordisk’s agility, sharpen focus, and ensure long-term sustainable growth.
Workforce Reduction and Investment Focus
As part of the plan, Novo Nordisk intends to reduce approximately 9,000 roles globally, including 5,000 in Denmark. This reduction, out of its 78,400-strong workforce, is projected to deliver annualised savings of around DKK 8 billion by the end of 2026. The savings will be reinvested into R&D, commercial execution, and manufacturing expansion in the company’s core areas of diabetes and obesity.
Novo Nordisk President and CEO Mike Doustdar stated:
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. We need a shift in our mindset and approach so we can be faster and more agile. Our transformation plan is designed to deliver this. 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
One-Off Costs and Updated Outlook
The transformation carries an expected DKK 8 billion in one-off restructuring costs, including impairment charges. Approximately DKK 9 billion will be incurred in Q3 2025, partially offset by DKK 1 billion in savings in Q4.
As a result, Novo Nordisk has revised its 2025 operating profit growth outlook to 4–10% at CER, down from its previous 10–16% forecast. Depreciation, amortisation, and impairment losses are now projected at around DKK 21 billion, compared to earlier expectations of DKK 17 billion.
Positioning for Long-Term Growth
While the workforce reduction is a significant step, Novo Nordisk views the transformation as essential to secure its leadership in diabetes and obesity treatments. The restructuring is expected to streamline operations, instill a stronger performance culture, and free resources for innovation.
Source
This article is based on the official announcement released by Novo Nordisk A/S.
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