A wave of layoffs is growing in Europe! Pharmaceutical giant to lay off 9,000 people

Danish pharmaceutical company Novo Nordisk will lay off 9,000 employees as part of its restructuring.

Savings planned as part of restructuring

The company, which produces the world-renowned weight loss drug Wegovy, said in a statement that it aims to achieve annual savings of 8 billion crowns, or approximately $ 1.26 billion, through restructuring.

Parting ways with employees

The company, which employs a total of 78,400 people worldwide, will lay off approximately 5,000 employees in Denmark, where it is headquartered.

A change plan is in effect in the shadow of competition

"Our markets, particularly in the obesity field, are evolving with increasing competition and consumer focus," newly appointed CEO Mike Doustdar said in a statement. "Our company must keep pace. This means embracing a performance-driven culture, using our resources more effectively, and prioritizing investments in areas where they will have the greatest impact: our leading therapeutic areas."

Europe's most valuable public company

Novo, which became Europe's most valuable publicly traded company last year on a surge in sales of its weight-loss drug, is at a critical juncture as the drug loses market share and sales growth slows, particularly in the United States.

The company has warned of much slower growth this year due to drugmakers being allowed to produce knock-offs similar to its own weight-loss drug.

Novo shaved $70 billion off its market capitalization in July after issuing a profit warning and appointing a new CEO. Its stock has also fallen nearly 46 percent since the beginning of the year.