London (CNN) — Novo Nordisk, the maker of weight loss drug Wegovy, will lay off about 9,000 people as it grapples with rising competition in the obesity market.

The Danish company has been battling it out with US rival Eli Lilly, with each developing newer medicines to turbocharge weight loss and diabetes results since the approval of Nordisk’s Ozempic in 2017.

The job cuts announced by Novo Nordisk Wednesday amount to more than 11% of its global workforce.

“Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven,” Mike Doustdar, president and CEO, said in a statement .

The company expects the layoffs to deliver annualized savings of around $1.25 billion by the end of 2026, which will be redirected to “growth opportunities” in diabete

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