Ozempic-maker Novo Nordisk is to lay off 9,000 of its staff, with 5,000 of those coming from its sites in Denmark, the company announced today.

The firm has around 78,400 staff worldwide; the redundancies account for 11.5 percent of its workforce.

“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,” CEO Mike Doustdar said. 

“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.”

It’s one of Doustdar’s first moves as head of the company after he replaced Lars Fruergaard Jørgensen earlier this year. Jørgensen, who had helmed the Danish drugmaker for eight years, saw Novo become Europe’s most valuable company under his leadership.

But the firm saw its share price tumble over the past year amid increased competition in the weight-loss drug market from Eli Lilly’s Mounjaro, and disappointing trial results for its next-generation treatments.

“Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well,” Doustdar said.

The company said the layoffs would mean a one-off cost of 8 billion danish krone (€1.07 billion)

It now expects full-year operating profit growth of 4 percent to 10 percent, down from the 10 percent to 16 percent outlined in August.