Teva job cuts : Israeli pharma company to remove 14,000 employees
Teva job cuts : Teva Pharmaceutical Industries, the Israel-based generic drug maker has announced its decision of removing 14,000 employees across its global operations under a two-year restructuring plan, designed at reviving its business and financial performance.
The Teva Pharmaceuticals job cuts represent more than a quarter of the global workforce of the Israeli pharma company with the layoffs to be executed in the course of the next couple of years.
As per the Teva restructuring plan, the generic drug maker is looking to reduce its overall cost base by $3 billion by the end of 2019, out of a $16.1 billion estimated cost base for 2017.
By the end of 2018, Teva Pharmaceutical aims to terminate more than 7,000 employees. The Israeli pharma company anticipates to take a restructuring charge of $700 million with a majority of that to be used for settling severance costs related to the Teva job cuts.
Teva Pharmaceutical is also bracing up for further charges that will come along with the closures or selling of its manufacturing facilities, research and development centers, headquarters and other office buildings.
Commenting on Teva job cuts, Kare Schultz – President of Teva Pharmaceutical said: “We will execute this plan in a timely and prudent manner, remaining focused on revenue and cash flow generation, in order to make sure Teva is ready to meet all of its financial commitments.
“Teva will optimize its cost base while ensuring that we protect our revenues and preserve our core capabilities in generics and in select specialty assets, in order to secure long-term growth. In 2018, we expect to secure the successful launches of Austedo and fremanezumab.”
The Israeli pharma company also intends to streamline its global generics portfolio to a great extent, especially in the United States through price adjustments and also by possible discontinuation of certain products.
The Teva job cuts and other measures are expected to help the generic drug maker to step up its restructuring of its manufacturing and supply network which comprises shutting down or disposals of various drug manufacturing factories in the United States, Israel, Europe and other regions.
Meanwhile, as per a report in the The Times Of Israel, the Israeli government led by Prime Minister Benjamin Netanyahu is looking to ensure that the number of Teva job cuts in the country is reduced and the Jerusalem factory is not closed as planned by the company.
About 1,700 employees are to be axed by the end of 2019 in the Teva job cuts in Israel.