Teva Pharma to start layoffs in Israel and US
The world’s largest generic drugmaker Teva Pharmaceutical is expected to cut up to a quarter of its 6,860-strong workforce in Israel, and a few thousand more staff in the United States. The company will send termination letters to many of its 10,000 employees in the United States in coming weeks.
The debt-laden company’s stock closed up 4.6 per cent in Tel Aviv. Teva had been widely expected to cut costs after warning this month it would miss 2017 profit forecasts due to falling prices of generics in the U.S. and weakening sales of its multiple sclerosis drug Copaxone.
Teva has also been saddled with nearly $35 billion in debt due to its $40.5-billion acquisition of Allergan’s generic drug business Actavis last year. Teva’s new Chief Executive Kare Schultz has been working out the details of the job cuts with regional management in Israel and the United States. It has been stated that between 20 per cent and 25 per cent of the staff in Israel could go, including Michael Hayden, Teva’s chief scientific officer and president of research and development.