Teva Pharm refutes media reports of up to 6,000 layoffs

Teva Pharmaceutical Industries plans to end unprofitable activities and freeze recruitment, but it said Israeli media reports of up to 6,000 layoffs were incorrect.

Earlier on Thursday, two of Israel’s leading financial-news websites carried separate reports that Teva, the world’s biggest generic-drug maker and Israel’s largest company, planned to fire between 2,000 and 6,000 workers – or as much as 11% of the workforce.

A Teva spokesperson had initially declined to comment on the report, but the company later issued a statement saying the figures the media gave were inaccurate.

“The efficiency program is an integral part of Teva’s business reality,” Teva said. “The program includes, among other things, ending unprofitable activities and consolidating functions, in addition to freezing recruitment and natural employee turnover.”

“These processes are conducted through a continuous open dialogue with the employees,” it said. “This will be the practice, including in Israel, as necessary. We would like to stress that the numbers that were published in the media are incorrect.” Teva employs some 57,000 people globally. It has had a rough year, though, with a series of costly acquisitions, along with delayed drug launches, sending its stock plummeting 72% to $32.61 over the past 12 months.

That forced former chief executive Erez Vigodman to step down in February, with chairman Yitzhak Peterburg replacing him on a temporary basis.

One of the websites, Calcalist, said Teva has already reduced its workforce in Israel by about 100 people as part of the efficiency plan.