Restructuring at Novo Nordisk as New CEO Implements Cost-Cutting Strategy

Novo Nordisk, the Danish pharmaceutical leader, has initiated significant workforce reductions at key American manufacturing facilities, signaling a strategic pivot under recently appointed Chief Executive Maziar Mike Doustdar. The company, which experienced unprecedented growth driven by its blockbuster drugs Wegovy and Ozempic, is now implementing a global cost-reduction program that includes layoffs at its crucial production site in Clayton, North Carolina.

The restructuring follows substantial investments in production capacity made after consumer demand for the company’s weight-loss and diabetes medications repeatedly outstripped supply. Manufacturing personnel and quality control specialists—positions central to pharmaceutical production—appear most affected by the current cutbacks.

Investor Confidence Wavers Amid Organizational Changes

Financial markets have responded cautiously to these internal transformations. Institutional investors are demonstrating increased skepticism toward the once high-flying stock, with hedge fund Roundview Capital LLC reducing its stake by 8.7% during the second quarter alone. This repositioning reflects broader concerns about the sustainability of previous growth expectations.

Should investors sell immediately? Or is it worth buying Novo Nordisk?

Multiple factors appear to be driving this shift in institutional sentiment. Regulatory pressure on drug pricing, substantial capital expenditures for production expansion, and leadership transition uncertainties have collectively contributed to a notable stock price correction.

Strong Performance Metrics Contrast with Slowing Growth

Despite delivering impressive financial results, the company faces tempered expectations. Novo Nordisk reported 2024 revenue of $42.12 billion, representing a 25% year-over-year increase. The standout performer, Wegovy, generated $5.35 billion in the first half of 2025—a remarkable 75.4% surge compared to the same period last year.

However, the company’s growth trajectory shows signs of deceleration. Revenue expansion slowed to 16.1% during the first six months of 2025, suggesting the explosive growth phase may be moderating. The recent workforce reductions indicate Novo Nordisk is preparing for a more challenging competitive landscape, transitioning from celebrated growth phenomenon to an enterprise focused on sustainable operations in potentially tougher market conditions.