COPENHAGEN, Denmark: Novo Nordisk, the Danish drugmaker behind blockbuster weight-loss drug Wegovy, is embarking on one of its deepest restructurings to date, cutting 9,000 jobs worldwide in an effort to shore up profits and sharpen its focus on diabetes and obesity treatments.

The overhaul, announced this week, is expected to save about eight billion Danish crowns (US$1.26 billion) annually and comes as the company faces growing competition from U.S. rival Eli Lilly.

About 5,000 of the cuts will fall in Denmark, Novo said, trimming its global workforce from roughly 78,400. The company had already imposed a global hiring freeze in August for non-critical roles.

“Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well,” said newly appointed CEO Mike Doustdar. “This means instilling an increased performance-based culture, deploying our resources ever more effectively, and prioritising investment where it will have the most impact – behind our leading therapy areas.”

Novo surged to become Europe’s most valuable listed company last year, worth $650 billion, on booming demand for Wegovy. But its momentum has faltered in recent months as shortages opened the door to compounding pharmacies producing copycat versions of the drug.

The company has warned of sharply slower growth this year, particularly in the U.S. market, where Wegovy has begun to lose share. In July, a profit warning wiped $70 billion off Novo’s market value. That same month, the firm replaced its longtime leadership with Doustdar, a veteran insider, as CEO.

The restructuring underscores both the pressure on Novo to defend its weight-loss franchise and the risks of being dependent on a single product category.