Ozempic maker to slash 9,000 jobs after warning of surge in ‘knock-off’ weight loss jabs
The company behind weight loss drugs Wegovy and Ozempic has announced it will cut 9,000 jobs weeks after warning that its profits could plunge as more "knock-off" versions of the jabs emerge.
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Novo Nordisk has said it will cut 11 percent of its workforce as the weight loss sector’s rapid expansion presses on.
The job losses for the Danish firm, which has a base at Gatwick, Sussex, is expected to come from its home market in Denmark.
Mike Doustdar, its new chief executive, said: "Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well."
“We need a shift in our mindset and approach so we can be faster and more agile.”
He added that by “realigning our resources now” the company can invest for growth, particularly in diabetes and obesity.
The company enjoyed a sharp rise in sales last year when popularity for its jabs ballooned around the world.
Read more: Ozempic and Wegovy maker Novo Nordisk sees shares tumble on profit alert
Read more: Thousands of people who could benefit from Mounjaro ‘missing out on NHS care’
Its restructuring is expected to cost around nine billion Danish kroner (£1 billion), incurred in the third quarter of 2025, Novo Nordisk warned.
It therefore said it was downgrading its profit outlook with the costs expected to knock around six percentage points off its full-year operating profit growth for 2025, compared with previous guidance.
This comes weeks after the firm cautioned over the “persistent use” of compounded, or copycat, versions of its drugs, many of which it called “unsafe and unlawful”.
Meanwhile, it is battling with surging competition from rival firms such as Eli Lilly, the maker of Mounjaro.
The US drug giant recently hiked the price of the ‘King Kong’ weight loss jab in the UK, sparking concerns among users that it would lead to shortages in pharmacies.
Eli Lilly said it was introducing the dramatic hike to bring Mounjaro’s price in line with other European markets, arguing the UK had benefitted from "significantly lower" costs.
Experts warned the vast surge threatened to push customers towards unregulated black market alternatives.
The announcement came after US President Donald Trump said he would be taking action to lower drug prices in the United States, threatening drug companies with sanctions if they did not offer US customers the lowest price for their products.