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Novo Nordisk Slashes Workforce After Wegovy Sales Slowdown
21 Aug
Summary
- Novo Nordisk's workforce grew by 131 new roles per week over 5 years
- Novo's gross margin squeezed as sales of Wegovy slow and competition rises
- New CEO plans to review all costs, including salaries, to cut expenses
In the past five years, Novo Nordisk has undergone a dramatic workforce expansion, nearly doubling its employee count from around 43,260 in 2019 to 77,350 by the end of 2024. This rapid growth, driven by the booming sales of its blockbuster weight-loss drug Wegovy, has now come under scrutiny from investors and the company's new management.
As of August 2025, Novo Nordisk's sales of Wegovy are slowing, and the company is facing increased competition from rival drugs like Lilly's Zepbound. This has put pressure on the company's gross margin, which reached its lowest level in two and a half years in the second quarter of 2025. In response, Novo's newly appointed CEO, Maziar Mike Doustdar, has implemented a global hiring freeze for non-critical roles and hinted at potential layoffs, particularly in the sales division.
Doustdar has stated that he is not limiting himself in terms of where he looks for savings, and salaries are a cost item that will be reviewed. The company's rapid expansion has seen employee costs almost double to nearly $9.9 billion by last year, and analysts believe Novo Nordisk has become "complacent" and now needs to slim down its operations to remain competitive.
