Key Highlights

• Novo Nordisk (NOVOb.CO) is executing one of the largest restructurings in its history, cutting 9,000 jobs globally, including 5,000 in Denmark.
• The layoffs are part of a plan by new CEO Mike Doustdar to restore profitability and regain market leadership in the obesity and diabetes drug sector.
• The move follows a steep 60% decline in Novo’s share price amid slowing sales of its blockbuster drug Wegovy and intensifying competition from Eli Lilly’s Mounjaro.
• Displaced Danish employees have formed an informal support network called “Club 5,000”, which now includes more than 1,000 members sharing job leads and mutual support online.

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Layoffs Hit Core Operations

Sources told Reuters that layoffs are impacting manufacturing, research, IT, sustainability, finance, and quality control teams — including workers at major production hubs in Kalundborg and Hillerød.

• The company reportedly aimed to complete most of the layoffs by mid-October, coinciding with Denmark’s “potato week” school holiday.
• Cuts in quality assurance, packaging, and line operations have sparked concerns that production capacity for Wegovy and Ozempic expansions in 2026 could be strained.
• Despite concerns, Novo insiders described the severance packages as generous, and shares have risen modestly since the layoffs were announced.

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New CEO Under Pressure

Mike Doustdar, who became CEO in August 2025, faces immense pressure to execute quickly. At a recent town hall, Doustdar emphasized the need to “act fast” to streamline operations and protect margins.

Industry analysts say the speed of the restructuring underscores Novo’s need to defend profitability in an increasingly crowded market.

“The speed of the layoffs points to Novo trying to protect profitability,” said Gareth Powell, head of healthcare at Polar Capital.

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A Culture Shock for Denmark’s Corporate Icon

The job cuts mark a significant shift for Novo Nordisk, Denmark’s largest company and long considered a model employer.

• Employees describe the process as opaque and fast-moving, with some offered demotions and just 24 hours to decide whether to accept.
• One staffer told Reuters, “The ones left behind are really going to have a hard time.”
• On social media, ex-staff have expressed both solidarity and disillusionment, with one sustainability manager writing, “It’s a new corporate ethos.”

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From Market Darling to Reset Mode

Novo Nordisk’s meteoric rise over the past five years — driven by its obesity franchise and a market valuation that once surpassed Denmark’s GDP — has now cooled sharply.

As generic competition rises and Eli Lilly’s Mounjaro gains share, analysts say Novo’s focus on cost efficiency and pipeline renewal will be key to its recovery.

The restructuring aims to free up resources for next-generation obesity treatments and manufacturing automation, but comes at the cost of thousands of Danish jobs in one of the country’s most prestigious industries.

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Investor Perspective

• Stock Performance: Shares have stabilized after months of decline, reflecting investor approval of the cost-cutting push.
• Risks: Operational strain from rapid staff reductions could delay product expansions and hurt supply reliability.
• Long-term Outlook: Novo’s path forward depends on its ability to reignite Wegovy’s momentum, bring new obesity therapies to market, and preserve quality in production amid downsizing.

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Quote of the Day

“People have a connection through the culture that has been there at Novo Nordisk,” said Romel Amineh, a laid-off IT worker who founded the ‘Club 5,000’ LinkedIn group.

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Summary Takeaway

Novo Nordisk’s “Club 5,000” symbolizes both the human cost and cultural upheaval behind the company’s dramatic restructuring. While the cost cuts aim to safeguard profitability in a fiercely competitive obesity drug market, the long-term challenge lies in maintaining innovation, morale, and operational integrity amid one of Denmark’s largest corporate downsizings in decades.