Teva Pharmaceutical to Cut 14,000 Jobs globally
The number of Jobs to be cut in India are unknown. However, the number of job cuts globally are 25 %. Teva Pharmaceutical Industries Ltd. has presence in India and has manufacturing plants at following locations:
1.
Plot No. A-2, A-2/1, A-2/2 UPSIDC Industrial Area, Bijnor Road,
Gajraula, Amroha 244235, India (IND).
2.
Plot No. Q1 to Q4 Industrial Area Ghirongi, Malanpur, Distt.
Bhind (M.P.) 477117, India (IND).
3.
C/O Ticel Biopark Limited, Chennai, Tamilnadu 600113, India
(IND). Through Actavis.
4.
Plot No N-15 MIDC, Additional Ambernath, Thane, Maharashtra
421506, India (IND). Through Watson.
Following news story from Wall Street Journal provides the details of the global story.
Teva Pharmaceutical Industries Ltd. is cutting
more than 25% of its workforce, or about 14,000 employees around the world,
closing factories and research centers and suspending its dividend—the Israeli
firm’s most recent move to cut costs and pare debt.
Teva, the world’s biggest seller of generic drugs, didn’t detail
where it is cutting jobs. At the end of the third quarter, it employed about
53,000, most of them in Europe and the U.S.
Teva has been hit hard by declining generics prices in the U.S.
and increased competition for its blockbuster multiple-sclerosis drug. It also
recently emerged from a period of boardroom and executive-suite turmoil.
Directors had clashed on the firm’s strategy after swallowing a big acquisition
that saddled it with heavy debt.
Earlier this year, the firm shuffled board members and appointed
Kare Schultz as chief executive—after the top job sat vacant for nine
months.
Mr. Schultz, who took over in September, has tried to move
quickly to restore stability. Teva said the two-year restructuring plan will
cut $3 billion in costs by the end of 2019, out of an estimated cost base of
$16.1 billion in 2017. Teva will also record a one-off charge of at least $700
million in 2018, mainly related to severance costs.
“Making workforce reductions of this magnitude is difficult,”
Mr. Schultz wrote in a memo to employees. “However, there is no alternative
to these drastic steps in the current situation.”
Investors have called for months for sweeping changes to Teva’s
sprawling operations and what critics have called an unwieldy supply chain, to
better cope with the turbulent U.S. generics market. One in seven prescriptions
in the U.S. is a Teva drug.
It is also facing new competition to its biggest patented drug,
while investors have grown concerned about the $35 billion in debt it took on
last year when then-Chief Executive Erez Vigodman bought Allergan PLC’s
generics unit.
The threat of job cuts has faced
opposition in Israel, where lawmakers already have called on the
government to withdraw tax benefits for Teva. The country’s largest labor union
said it will strike over the job losses announced Thursday. Teva is cutting
1,700 jobs in Israel. As of the end of last year, it employed a bit over 6,800
there.
Teva also said it wouldn’t pay an annual bonus this year and
will review the potential for additional divestment of noncore assets.
Mr. Schultz has shuffled the company’s leadership ranks and said
he would combine its generic and specialty businesses to cut costs. The firm
also said research and development operations for the two businesses would be
combined.
Mr. Schultz took charge of the Israeli firm only days before
it announced
disappointing third-quarter results and cut its earnings-per-share
estimate for the year. The third-quarter results followed a $6.1 billion
write-down in August, blamed on its U.S. generics unit. That dragged the
company’s quarterly net loss to $6.04 billion. Its shares lost a quarter of
their market value that day.
Teva also this year has said it would face competition for its
blockbuster specialty drug Copaxone earlier than planned. The drug makes up
roughly 20% of the firm’s total revenue.
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