Novo Nordisk (NVO) - Get Report   took an axe to its workforce on Thursday when it announced a wave of layoffs across its global business.

The diabetes and obesity drugs manufacturer will cut 1,000 staff jobs, including 500  in Denmark. The cuts are equivalent to just more than 2% of its workforce.

"It is needed in order for us to have a sustainable balance between income and costs...we have to prioritise investments in key product launches that will bring innovation to patients and drive our future growth" said outgoing CEO Lars Rebien Sorensen.

Competition for Novo Nordisk's diabetes treatments  has swollen in recent months and health insurance providers, or payors, have proven successful at using that competition to force down pricing.

Diabetes drugs account for nearly 80% of Novo's sales. But, after reaching a peak of $271 in 2014, prices for traditional treatments like basal insulin drugs have fallen by more than 20% in the U.S. to $215 per prescription in 2016.

Meanwhile, drug pricing has become a political issue, with leading Presidential candidate Hillary Clinton pledging to clamp down on pharmaceuticals companies.

Novo Nordisk  stock fell by 1% to  287.30 Danish kroner ($43.26) in early European trading before paring losses.

Novo Nordisk achieved 12% revenue growth in its most recent financial year, down from the annual growth of about 20% it had achieved over the previous five years.

"We forecast a further deceleration to low-mid-single digits for 2016-2018," said the healthcare team at Berenberg in a recent note.

UnitedHealth Group's (UNH) - Get Report recent decision to drop Sanofi's (SNY) - Get Report Lantus, a basal insulin treatment, from its list of covered drugs for 2017 exemplifies the cut throat approach to pricing that has been adopted by payors.

Nordisk's Tresiba basal insulin treatment has also been excluded while its Levemir will be lowered to Tier 2 status next year, according to Jefferies analysts. 

The U.S market for diabetes treatments is the world's largest, with more than 29 million Americans suffering from the illness, at a cost of more than $300 billion to the healthcare system.

Compounding the pressure on Novo is the risk that healthcare payors also prove successful at pulling down pricing of so called GLP-1 combinations.

These are popular treatments as, unlike the traditional pure basal insulin drugs, GLP1s are able to treat both diabetes and cardiovascular conditions at the same time.

But the appeal of a dual-use treatment has seen the GLP-1 field becoming crowded. 

Eli Lilly's (LLY) - Get ReportJardiance isnow expected by analysts to become the market leading treatment for diabetes and cardiovascular conditions.

"We think Lilly will become the fastest growing diabetes player for the next five years at least," Berenberg noted recently.

But Novo's ability to fight back on an increasingly competitive field cannot be completely discounted. Its own GLP-1 drug, Victoza, and recent trials with injectable Semaglutide have left some analysts feeling optimistic about the future.

"We like the growth prospects for Novo Nordisk's GLP-1 franchise," said Jeffrey Holford at Jefferies, who also said that the market for GLP-1 treatments has continued to grow at an attractive rate in the U.S. during 2016.

Novo Nordisk didn't respond to questions seeking comment on whether investors should expect further restructuring measures over the coming months.