Novo Nordisk (NVO) Stock: Company Slashes 9,000 Jobs as Profit Forecast Drops

TLDR

• Novo Nordisk reduces 2025 operating profit growth forecast to 4-7% from previous 4-10% projection
• Company announces 9,000 job cuts globally with 5,000 positions eliminated in Denmark
• Q3 operating profit declined 30% to DKK 23.7 billion, below analyst expectations
• Wegovy quarterly sales reached DKK 20.4 billion but missed DKK 20.9 billion analyst target
• NVO shares down 50% year-to-date as Eli Lilly competition and generic alternatives pressure market share

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Novo Nordisk cut its full-year profit outlook Wednesday while announcing plans to eliminate 9,000 jobs worldwide. The restructuring comes as the weight-loss drug manufacturer faces mounting competition in the obesity medication market.

The Danish pharmaceutical company lowered its 2025 operating profit growth forecast to 4-7%. The previous range stood at 4-10%.

Sales growth projections also dropped to 8-11% from 8-14%. CEO Mike Doustdar cited slower expansion in GLP-1 treatments as the primary driver.

Novo Nordisk A/S (NVO)

These medications include Wegovy for weight management and Ozempic for diabetes. Both products have fueled Novo’s growth but now face market headwinds.

Third Quarter Results Miss Expectations

Operating profit tumbled 30% in Q3 to DKK 23.7 billion. Analysts projected DKK 24.6 billion for the quarter.

Total sales increased 5% to DKK 75.0 billion Danish crowns. This compared to analyst forecasts of DKK 76.2 billion.

Wegovy sales rose 18% year-over-year to DKK 20.4 billion. The figure fell short of the DKK 20.9 billion consensus estimate.

Ozempic generated DKK 95.3 billion in sales through nine months. This represented a 10% increase in Danish kroner and 13% growth at constant exchange rates.

NVO stock has declined 50% in 2025. Pressure from U.S. competitor Eli Lilly and compounded copycat medications has eroded market position.

The company warned that “unsafe and unlawful mass compounding has continued” during the third quarter. These custom-made alternatives use the same active ingredients as branded drugs.

Restructuring Program Details

The workforce reduction includes 5,000 positions in Denmark and 4,000 in other markets. Restructuring expenses totaled approximately DKK 8 billion in 2025.

Severance payments accounted for DKK 5 billion of costs. Asset impairments added another DKK 4 billion to the total.

Management expects DKK 1 billion in savings during the fourth quarter. For the first nine months, operating profit rose just 5% to DKK 95.9 billion including restructuring charges.

Excluding one-time costs, operating profit would have climbed 15% in Danish kroner. At constant exchange rates, the increase reached 21%.

The operating margin contracted to 41.7% from 44.7% one year earlier. Gross margin decreased to 81.0% from 84.6% as production costs rose.

Sales Performance by Region and Category

Obesity care revenue jumped 37% in Danish kroner and 41% at constant rates to DKK 59.9 billion. U.S. sales grew 12% in Danish kroner and 15% at constant exchange rates.

International operations increased 13% and 16% respectively. Within international markets, EUCAN expanded 18%, Asia-Pacific surged 35%, and China grew 8% at constant rates.

Research and development spending increased 9% to DKK 37.4 billion. Free cash flow fell 11% to DKK 63.9 billion due to higher capital expenditures of DKK 41.7 billion.

The FDA approved Wegovy for treating metabolic dysfunction-associated steatohepatitis during the period. Novo Nordisk also agreed to acquire Akero Therapeutics and Omeros Corp.’s MASP-3 inhibitor zaltenibart.

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