Hims & Hers (HIMS) Lays Off 4% of Workforce Post Ban on Weight-Loss Drug Copies

Telehealth company Hims & Hers Health (HIMS) is reducing its workforce by 4%, impacting 68 of its over 1,600 global employees, according to a Bloomberg report. This move comes after a recent U.S. ban on the mass production of compounded versions of the weight-loss drug Wegovy.

While the company confirmed the layoffs, it clarified that these job cuts were not directly related to the compounding ban but rather to improve operational efficiency across various teams.

Hims stated that these changes would not affect its strategic priorities or the medical specialties it serves and that it still intends to hire for roles aligned with its long-term growth strategy.

Hims Hit Hard by Wegovy Ban

Hims & Hers is facing challenges after the U.S. Food and Drug Administration banned compounded copies of Novo Nordisk’s (NVO) Wegovy on May 22, 2025. Since the ban, HIMS stock has declined about 14%.

Hims had offered cheaper versions of Wegovy, which helped boost subscriptions and drive strong revenue growth in 2024. With the ban, the company loses a key revenue stream.

To mitigate this, Hims is shifting focus to low testosterone and menopause treatments while partnering with Novo Nordisk to help patients access brand-name Wegovy at discounted rates.

Analysts Bearish on HIMS Stock Post Ban

Following the ban, two analysts reiterated a Sell rating on HIMS stock. Among them, BofA analyst Allen Lutz noted that Hims & Hers’ sales growth is slowing. Also, sales of GLP-1 drugs, such as compounded semaglutide, dropped for the second month in a row.

The Top-rated analyst believes that if sales of compounded semaglutide weaken further in May and June, HIMS would need stronger growth in its core business and brand-name Wegovy sales to offset losses, which the analyst warns could be difficult.

Is HIMS Stock a Good Buy?

Turning to Wall Street, HIMS stock has a Hold consensus rating based on two Buys, seven Holds, and two Sells assigned in the last three months. At $41.73, the average Hims & Hers stock price target implies a 26.22% downside potential.

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