Kalundborg is known as Novo Town due to the presence of a major Novo Nordisk factory.
Stock.adobe.com

It’s important to remember that layoffs impact real people.

Novo Nordisk recently announced plans to streamline its operations and redirect resources towards growth opportunities. Unfortunately, this initiative includes plans to reduce its global headcount by about 9,000 roles globally. That includes a reduction in headcount of about 5,000 workers in the company’s home country of Denmark.

How will Novo Nordisk's layoffs impact Novo Town?

From a business standpoint, the news marked a sharp turn for the company’s fortunes. It was only a few years ago that the success of Wegovy and Ozempic made Novo Nordisk an massively successful company. The demand for the drugs was so high that the company couldn’t keep up with it. Various celebrities and influencers spoke about the effectiveness of the drug.

Since then, however, multiple competitors have released their own GLP-1 medications, and the industry continues to innovate in this space. Oral versions of the drugs have shown promise, which would be much easier for patients to take instead of the injectable versions. Multiple companies are even looking into versions of the medication that promote weight-loss and muscle retention at the same time.

While these innovations are promising for patients, they also mean increased competition for Novo Nordisk. The company spent the past three years growing, but it appears that period has come to an end. While layoffs are never painless, they could be especially for difficult for one town in Denmark.

A new report from Reuters¹ details how the residents of Kalundborg, Denmark, are reacting to the news of the looming layoffs. The city is home to major Novo Nordisk factory and is often referred to as Novo Town. During Novo’s growth phase, Kalundborg grew along with it. New jobs came to the town and house prices spiked.

In a statement to Reuters, the town’s deputy mayor Tina Beck-Nilsson said, ““I think everyone just took our breath in when we heard how many people they have to lay off because how is it going to affect us here in Kalundborg?"

The town’s mayor, Martin Damm, took a more positive tone, however. He said, “Right now they are expanding, building new factories for 65 billion Danish crowns. When they are finished, I don't think they will have them empty. I think they will have people inside to produce, so they can sell what they are doing in the world.”

In the company’s streamlining announcement,² Novo Nordisk president and CEO Mike Doustdar said, “As the global leader in obesity and diabetes, Novo Nordisk delivers life-changing products for patients worldwide. But our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well. This means instilling an increased performance-based culture, deploying our resources ever more effectively, and prioritizing investment where it will have the most impact––behind our leading therapy areas.”

Doustdar continued, “It is always difficult to see talented and valued colleagues go, but we are convinced that this is the right thing to do for the long-term success of Novo Nordisk. We need a shift in our mindset and approach so we can be faster and more agile. Our transformation plan is designed to deliver this. By realigning our resources now, we will be able to prioritize investments to drive sustainable growth and future innovation for the millions of patients with chronic diseases globally, particularly in diabetes and obesity.”

Sources

1. Denmark’s ‘Novo Town’ holds its breath as Wegovy fever fades. Reuters. September 25, 2025. https://www.reuters.com/business/healthcare-pharmaceuticals/denmarks-novo-town-holds-its-breath-wegovy-fever-fades-2025-09-25/
2. Novo Nordisk to streamline operations and reinvest for growth. Novo Nordisk. September 10, 2025. Accessed September 25, 2025. https://www.novonordisk.com/content/nncorp/global/en/news-and-media/news-and-ir-materials/news-details.html?id=916424