Novo Nordisk plans to cut 11% of its workforce, about 9,000 positions, to save $1.25 billion annually by 2026. The company faces increased competition in the weight-loss drug market and will reinvest savings in diabetes and obesity therapies.

The restructuring aims to align Novo Nordisk with evolving markets and consumer demands. CEO Mike Doustdar emphasized a shift to a performance-based culture and prioritizing investments in diabetes and obesity therapy areas for maximum impact.

Novo Nordisk’s strategic workforce reduction marks a significant turnaround from its recent hiring spree. The layoffs will bring the company’s headcount back to early-2024 levels after a period of rapid growth fueled by popular weight-loss drugs.

The company anticipates one-off restructuring costs of $1.25 billion, impacting its full-year 2025 operating profit growth forecast, which has been revised down to 4-10%. The restructuring is a key initiative under the leadership of new CEO Mike Doustdar to position the company for long-term success.

Investors responded positively to Novo Nordisk’s restructuring plan, with Danish-listed stock rising by 3% and U.S. shares climbing approximately 1.7% in pre-market trading. Despite earlier profit warnings, the market seems to view the restructuring favorably for the company’s future growth and competitiveness.

Read more at Yahoo Finance: Ozempic maker Novo Nordisk to cut 11% of workforce