Novo Nordisk Faces Challenges Amid Global Hiring Freeze

Novo Nordisk, the producer of the obesity drug Wegovy, has announced a global hiring freeze for non-critical roles. The company faces competition from copycat versions of Wegovy and pressures from competitor Eli Lilly. A new CEO seeks cost savings, potentially leading to layoffs.

The pharmaceutical giant Novo Nordisk, known for its blockbuster obesity drug Wegovy, has announced a global hiring freeze affecting non-essential job roles. This move comes amid escalating competition from generic versions of Wegovy introduced this year.

The company is grappling with intense market pressures and faces potential layoffs as it contends with its main competitor, Eli Lilly. Investors reacted strongly in July, erasing $70 billion from Novo Nordisk's market value after a profit warning and the appointment of a company veteran as CEO.

New CEO Mike Doustdar, who officially took on the role on August 7, indicated in an interview with Danish broadcaster TV2 that he would pursue cost reductions throughout the company. Doustdar did not rule out layoffs as part of these cost-saving measures.

(With inputs from agencies.)