Israel’s Teva Pharmaceutical Industries has announced a restructuring plan that will will see This kind of cut 14,000 jobs worldwide, or 25% of its total workforce.
Israel itself will feel a deep impact – the company plans to cut about half of the 6,400 employed within the country.
the planet’s largest generic medicines maker will also suspend dividend payouts to shareholders to help make cuts of $3bn (£2.3bn) within two years.
Teva is actually struggling with $35bn debt through an acquisition as well as rising competition.
Teva’s brand new chief executive, Kare Schultz, said the savings were “crucial to restoring our financial security”.
Last month, the company was forced to cut its 2017 profit forecast for the third time as well as reduce its dividend.
Its share cost fell to its lowest level in 17 years.
Mr Schultz unveiled a simplified organisational structure as well as brand new executive management team at Teva two weeks ago, shortly after joining through the Danish pharmaceutical company Lundbeck.
On Thursday, he announced a two-year restructuring plan that will he said would likely “reduce our cost base across our global business as well as become a more efficient as well as profitable company”.
Teva aims to its current expenses of $16.1bn by reducing layers of management as well as simplifying business processes.
This kind of plans to make improvements to its generic drug production, including “adjusting” prices as well as stopping doing some altogether.
This kind of also aims to close or sell a significant number of manufacturing plants, research as well as development facilities, headquarters as well as different offices.
The majority of the 14,000 job cuts are required to occur in 2018, with most of the affected employees being notified within the next 0 days.
“Today’s announcement is actually about positioning Teva for a sustainable future which we will achieve with our talented people,” Mr Schultz said. “We will ensure that will we continue to provide high quality medicines to the many patients we serve every day, while adhering to the highest standards of GMP compliance.”
Israel’s main labour union has threatened a nationwide half-day strike by its 750,000 members in protest at the cuts.
“The entire economy – through the airport to the banks to the seaports to the municipalities to the government service to the health clinics – will stand until noon on Sunday in solidarity with Teva’s employees,” Avi Nissenkorn, chairman of Histadrut, told reporters on Wednesday.