Headlines
Drugmaker Novo Nordisk freezes hiring for non-critical jobs
Published by Global Banking and Finance Review
Posted on August 20, 2025
1 min readLast updated: January 22, 2026
Quick Summary
Novo Nordisk has announced a global hiring freeze for non-critical roles due to market pressures and competition from Eli Lilly, potentially leading to layoffs.
Novo Nordisk Implements Global Hiring Freeze Amid Market Pressures
COPENHAGEN (Reuters) -Wegovy-maker Novo Nordisk has implemented a global hiring freeze covering job roles that are not critical for its business, the company said on Wednesday.
The company is battling competition from copycat versions of its blockbuster Wegovy obesity drug this year and could face layoffs as it battles rising pressure from its main rival Eli Lilly.
"We currently have a hiring freeze in non-business critical areas," the company said in an emailed statement, without elaborating.
Investors in July wiped $70 billion off the drugmaker's market value, after Novo - which became Europe's most valuable listed company following the launch of Wegovy in 2021 - issued a profit warning and named a company veteran as its new CEO.
The new CEO, Mike Doustdar, who took the helm on August 7, told Danish broadcaster TV2 on his first day in office that he would look for cost savings throughout the company and also consider layoffs.
(Reporting by Jacob Gronholt-Pedersen and Louise Rasmussen, editing by Stine Jacobsen and Terje Solsvik)
Key Takeaways
- •Novo Nordisk implements a global hiring freeze.
- •The freeze affects non-critical job roles.
- •Competition from Eli Lilly pressures Novo Nordisk.
- •Potential layoffs may occur as cost-saving measures.
- •Novo Nordisk's market value dropped by $70 billion.
Frequently Asked Questions about Drugmaker Novo Nordisk freezes hiring for non-critical jobs
1Why has Novo Nordisk implemented a hiring freeze?
Novo Nordisk has implemented a hiring freeze in non-business critical areas due to rising competition and market pressures, particularly from rival Eli Lilly.
2What impact did the profit warning have on Novo Nordisk?
In July, investors wiped $70 billion off Novo Nordisk's market value following a profit warning, indicating significant concern over the company's financial outlook.
3Who is the new CEO of Novo Nordisk?
The new CEO of Novo Nordisk is Mike Doustdar, who took over on August 7 and has indicated a focus on cost savings and potential layoffs.
4What is Wegovy and why is it significant for Novo Nordisk?
Wegovy is a blockbuster obesity drug developed by Novo Nordisk, which has significantly contributed to the company's market value and growth since its launch in 2021.
5What are the implications of the hiring freeze for Novo Nordisk?
The hiring freeze suggests that Novo Nordisk is taking proactive measures to manage costs and navigate competitive pressures, which may also lead to layoffs in the future.
