Ozempic Maker Novo Nordisk Plans to Cut 150 Jobs in India as Part of Global Layoffs

The Danish pharmaceutical company intends to reduce 11% of its workforce, or 9,000 positions, in order to save 8 billion Danish krone ($1.25 billion) a year. Indian workers in Bengaluru have been laid off less than a month after Ozempic manufacturer Novo Nordisk declared it was reducing its worldwide workforce as part of a reorganisation strategy.

At least three people who are aware of the development reported to Mint, saying that it has affected junior-to-mid-level personnel in departments like sales and marketing as well as those in the company’s global business services (GBS) hub, which collaborates with its international teams. According to Mint, the commercial unit, which primarily consists of sales and marketing positions, will lay off at least 100–150 employees.

As part of the worldwide layoffs, they are anticipated to be in junior and middle order. Another official with knowledge of the situation stated that other departments are probably affected as well.

Novo Nordisk Facing with Stiff Competition

The Danish drugmaker planned to cut 9,000 jobs, or 11% of its workforce, in September, which would save it 8 billion Danish krone ($1.25 billion) annually. The announcement came as the company struggles with increasing competition from rivals like Eli Lilly in the highly lucrative obesity segment.

The company said in an emailed response to media queries on the India layoffs that it has announced that the total number of intended workforce reductions globally is approximately 9,000. Out of respect for the employees involved, the company will not share additional details about individual sites or areas.

This process takes time, and the company’ highest priority is to support its employees. The layoffs come as the pharma giant plans to launch its blockbuster once-a-week weight loss drug, Ozempic, in India soon. The Indian drug regulator approved it last month, and the launch is imminent.

Novo Nordisk launched Wegovy, another once-a-week injectable, in India in July even as competitor Eli Lilly’s drug Mounjaro was gaining significant ground.

Reasons for Novo Nordisk’s Layoffs

Since last year, Novo Nordisk’s growth has been hindered by cheaper imitation compounds in the US and fierce competition from Eli Lilly’s medicines, such as Zepbound and Mounjaro. In an effort to streamline its operations, speed up decision-making, and reallocate resources to the company’s expansion prospects in diabetes and obesity, the corporation announced worldwide employment layoffs last month.

Eli Lilly, a competing American pharmaceutical company, gained a first-mover advantage in India in March when it introduced its weight-loss medication, Mounjaro. Analysts predict that the weight-loss medication market in India, which has over 254 million obese people and over 100 million diabetics, would reach INR 10,000 crore in the next two to three years. According to data from Pharmarack, Wegovy had made INR 19 crore in sales as of August, while Mounjaro had made INR 150 crore nationwide.