Novo Nordisk announced the hiring freeze as it faces strong competition in the weight-loss space.
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Competition continues to impact the major players in the weigh-loss medication space.
Novo Nordisk announced a hiring freeze for all non-business critical areas.1 The drug-maker did not provide more details in a statement obtained by Reuters, although the move is not entirely surprising.
When Ozempic and Wegovy first hit the markets, Novo Nordisk appeared to be unstoppable. The drugs became incredibly popular and the demand became so high that the Danish company was unable to meet demand. By 2024, the market started to stabilize and Ozempic had become a household name as the drug became synonymous with weight-loss.
However, things have changed. Primarily, Novo Nordisk is fighting off competition from Eli Lilly, who launched its own weight-loss medication, Zepbound.
In late July of this year, Novo Nordisk’s stock prices fell to a three-year low, making it one of the worst days for the company’s stock in decades.2 According to MarketWatch, prices dropped 21.83% in one day, prompting the company to issue a profit warning.
Around the same time, the company announced a new CEO, Maziar Mike Doustdar. A Novo Nordisk veteran, Doustdar officially stepped into the role on August 7 of this year. At the time, he made comments to the press about his plans to implement cost-savings throughout the company. At the time, he said layoffs would be considered.
It hasn’t been all bad news for Novo Nordisk, however. The company’s stock recently jumped following the accelerated approval of Wegovy for MASH and liver fibrosis. In regard to the competition, Eli Lilly recently announced that it will raise the list price of Mounjaro in the UK by 170%. A statement from the company suggested that this increase was partially due to the President’s MFN order. To add on to bad news for the competition, Lilly’s novel oral GLP-1 receptor agonist underperformed in trials and failed to meet Wall Street’s expectations.
Earlier this week, Novo announced that it is offering Ozempic at a $499-per-month price point for self-paying patients.
In July, when Novo announced that Doustdar would be stepping into the role of CEO,3 company chair Helge Lunde said, “Mike is an exceptional leader and has the unanimous support of the Board. We are confident that he is the best person to lead Novo Nordisk through its next growth phase. Mike has consistently demonstrated the ability to drive growth through strong commercial execution and building high-performing teams. This is an important moment for Novo Nordisk. The market is developing rapidly, and the company needs to address recent market challenges with speed and ambition. I believe Novo Nordisk will build on its strengths as a global leader in obesity and diabetes, and Mike has a clear vision of how to unlock the full potential of the opportunities ahead.”
In the same press release, Doustdar added, “It’s an enormous privilege to lead this company at a time of tremendous opportunity and change. I come to this role with a sense of urgency, a laser focus on high performance, and a fierce determination for Novo Nordisk to aim higher than it’s ever done, and to deliver to many more patients the innovation they need. From my decades in leadership roles across Novo Nordisk, I know the extraordinary talent and commitment of our people and the excellence of our science. This has enabled us to achieve great things in the past and will ensure we continue to do so in the future.”
SourcesDrugmaker Novo Nordisk freezes hiring for non-critical jobs. Reuters. August 20, 2025. https://www.reuters.com/business/healthcare-pharmaceuticals/drugmaker-novo-nordisk-freezes-hiring-non-critical-jobs-2025-08-20/Ozempic maker Novo Nordisk has its worst day since Black Monday. MarketWatch. July 29, 2025. Accessed August 20, 2025. https://www.marketwatch.com/story/novo-nordisk-issues-profit-warning-as-competition-legal-and-otherwise-hits-wegovy-ozempic-2d94d1a0Maziar Mike Doustdar appointed as president and chief executive officer of Novo Nordisk. Novo Nordisk. July 29, 2025. Accessed August 20, 2025. https://www.novonordisk.com/content/nncorp/global/en/news-and-media/news-and-ir-materials/news-details.html?id=916408