Novo Nordisk's office on the outskirts of Copenhagen on July 14. The Danish company has announced layoffs as it faces slowing momentum in its obesity and diabetes franchises.

Novo Nordisk NVO-N , the maker of blockbuster weight-loss drug Wegovy, said on Wednesday it will cut 9,000 jobs in a bid to reignite growth and fend off intense competition from U.S. rival Eli Lilly and a wave of compounded copycat drugs.

The restructuring, expected to save eight billion Danish crowns (US$1.25-billion) annually, comes as Novo Nordisk faces slowing momentum in its once-booming obesity and diabetes franchises.

The Danish company also issued its third profit warning this year, citing nine billion crowns in one-off costs tied to the overhaul.

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