Novo Unveils Transformation Plans to Better Compete in the Obesity Market
The global healthcare company is expecting that its efforts to streamline operations will allow it to improve the speed of decision making and reinvest savings into pertinent growth opportunities.
In an effort to better compete in the current obesity market, Novo Nordisk has revealed its transformation plans aimed at simplifying the organization, improving the speed of decision-making, and reallocating resources towards the company’s growth opportunities in diabetes and obesity. According to the company, after a period of rapid scale up, the organizational complexity and costs have risen, limiting the company’s ability to invest in growth opportunities.
“As the global leader in obesity and diabetes, Novo Nordisk delivers life-changing products for patients worldwide. But our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven,” said Mike Doustdar, Novo Nordisk president and CEO, in a company press release (1). “Our company must evolve as well. This means instilling an increased performance-based culture, deploying our resources ever more effectively, and prioritizing investment where it will have the most impact — behind our leading therapy areas.”
Part of the company’s transformation plans includes reducing the global workforce by approximately 9,000 positions, with the majority of reductions expected in Denmark (1). Through this restructuring, Novo anticipates it will be able to deliver DKK 8 billion in annualized savings by the end of 2026, which will be redirected to growth opportunities in diabetes and obesity.
“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. We need a shift in our mindset and approach so we can be faster and more agile. Our transformation plan is designed to deliver this,” added Doustdar in the press release (1). “By realigning our resources now, we will be able to prioritize investments to drive sustainable growth and future innovation for the millions of patients with chronic diseases globally, particularly in diabetes and obesity.”
The restructuring efforts are set to begin immediately with affected employees being contacted over the course of the next few months. Additionally, the company has planned some other initiatives to enhance organizational focus, performance culture, and speed of decision-making, as well as cost efficiencies.
These plans come a little over a month after the company installed Doustdar as the new President and CEO, replacing Lars Fruergaard Jørgensen who had been in place for eight years. Doustdar was unanimously chosen as Jørgensen’s replacement by the company’s board, rising from his previous position as the Executive Vice President of International Operations (2).
“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,” commented Helge Lund, Chair of Novo Nordisk, in a company press release about the appointment (2). “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.”
References
Novo Nordisk. Novo Nordisk to Streamline Operations and Reinvest for Growth. Press Release, Sept. 10, 2025.
Novo Nordisk. Maziar Mike Doustdar Appointed as President and Chief Executive Officer of Novo Nordisk. Press Release, 29 July 2025.