Novo Nordisk, the pharmaceutical major behind the blockbuster obesity drug Wegovy, has imposed a global hiring freeze, halting recruitment for all non-critical positions. The move reflects intensifying pressure from increasing competition and market volatility.

The company has faced mounting challenges from generic versions of Wegovy and Eli Lilly’s rival obesity drug, Zepbound. In July 2025, Novo Nordisk saw its market capitalisation shrink by USD 70 billion after it revised down its profit outlook, signalling the scale of the headwinds.

Mike Doustdar, who took charge as chief executive in early August, has initiated a wide-ranging restructuring strategy to streamline operations and rein in costs. The company confirmed that, while the hiring freeze is the immediate step, further cost-cutting measures are under evaluation, including the potential for layoffs.

The decision marks a significant shift for Novo Nordisk, which had rapidly expanded its workforce in recent years on the back of Wegovy’s success. The blockbuster drug had propelled the company into a dominant position in the obesity treatment market and fuelled years of aggressive growth.

Analysts suggest the hiring freeze underscores a cautious new phase for Novo Nordisk as it balances competition, slowing profit growth, and investor pressure with the need to safeguard its long-term leadership in the obesity drug segment.