Danish pharmaceutical giant Novo Nordisk has implemented a global hiring freeze for all non-business critical roles, signaling a major shift in its operational strategy amid intensifying competition and financial headwinds.
The decision, confirmed by company spokespersons, follows the appointment of Maziar Mike Doustdar as CEO earlier this month and reflects a broader effort to reassess spending and streamline operations.
The hiring freeze applies across all departments and geographies.
Exceptions are made only for roles essential to business continuity, including manufacturing, clinical development, sales, and finance.
Market Challenges and Competitive Pressures
Novo Nordisk, best known for its blockbuster diabetes and obesity drugs Ozempic and Wegovy, has faced mounting challenges in recent quarters.
The company’s dominance in the GLP-1 drug category has been tested by Eli Lilly’s Zepbound (tirzepatide), which has shown higher efficacy in weight-loss treatment and is gaining market share rapidly.
Additionally, the rise of compounded versions of semaglutide and tirzepatide—often sold at lower prices by specialized pharmacies—has further eroded Novo Nordisk’s competitive edge.
Despite regulatory efforts to curb the compounded drug market, demand for these alternatives remains strong, impacting Novo’s revenue projections.
In July 2025, Novo Nordisk’s stock saw a sharp decline, wiping out nearly $70 billion in market value.
This followed a profit warning and the company’s second downward revision of its sales growth forecast that year.
Novo Nordisk Leadership Transition and Strategic Realignment
The hiring freeze coincides with a leadership transition at the company.
Maziar Mike Doustdar officially took over as CEO of Novo Nordisk on August 7.
He brings more than three decades of experience with the company, succeeding Lars Fruergaard Jørgensen.
Maziar has expressed a clear intent to implement cost-saving measures across the organization.
He also plans to reallocate resources toward core growth areas, with a focus on diabetes and obesity treatments.
“We need to relook at our cost base and put money where the growth is,” Maziar stated during the company’s recent earnings call.
He also acknowledged that layoffs may be considered as part of the restructuring process.
Workforce Expansion and Retrenchment
Novo Nordisk’s workforce has grown significantly in recent years, reaching over 78,000 employees globally by mid-2025.
Much of this expansion was driven by the need to scale production and support rising demand for Ozempic and Wegovy.
However, the company now faces the challenge of balancing its workforce size with slower-than-expected growth and increased market competition.
The hiring freeze is not expected to impact critical operations.
However, analysts believe it could signal broader organizational changes, including possible job cuts in non-core areas.
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