Novo Nordisk axes cell therapy R&D, prioritizes obesity & diabetes in US$1.3B cost-cutting restructure

DENMARK—Novo Nordisk has decided to discontinue all research and development in cell therapy, including a promising program for Type 1 diabetes, as part of a major restructuring led by its new CEO, Maziar Mike Doustdar.

This decision involves laying off nearly all employees in the cell therapy division, totalling around 250 positions.

The company is now seeking partners with the right expertise and manufacturing capacity to continue developing its innovations in this field.

This move aligns with Doustdar’s broader initiative to simplify the company’s structure and improve focus, aiming to save about US$1.3 billion annually by the end of 2026.

The cost-cutting plan includes reducing the global workforce by approximately 9,000 jobs, which represents about 11% of Novo Nordisk’s employees worldwide.

The layoffs affect various divisions, with the cell therapy unit being one of the most impacted.

The cell therapy efforts being halted covered not only Type 1 diabetes but also treatments related to Parkinson’s disease and chronic heart failure.

Recently, Novo Nordisk ended a US$598 million collaboration with Japanese biotech Heartseed to develop cell therapy for advanced heart failure, signalling a strategic shift in resources toward its core focus areas: obesity and diabetes.

This restructuring comes shortly after Novo Nordisk’s acquisition announcement of Akero Therapeutics for US$5.2 billion in cash, aiming to expand its portfolio in liver disease treatments.

Novo Nordisk has confirmed it will not disclose details about specific sites or the individual staff members affected, citing respect for those involved.

The reorganization reflects a shift towards streamlining operations, reducing redundancy, and enhancing the company’s agility to compete in increasingly dynamic markets.

The company has already begun notifying employees about the layoffs and is working to reallocate resources to strengthen its leadership in obesity and diabetes therapies.

In addition to the cutbacks in cell therapy, workforce reductions also affect staff in manufacturing sites, including significant layoffs at the largest U.S. production facility for its obesity and diabetes drugs.

This wave of changes is part of a new strategic direction under CEO Doustdar, who took over leadership in August 2025 and has focused on regaining growth momentum by prioritizing the company’s core business sectors.

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