Troubled Teva brings out the ax as it cuts deep into its Israeli pharma group
Teva won’t wait for a new CEO to take the helm before it starts laying off workers in Israel.
Over the weekend the generic/branded hybrid confirmed plans to begin laying off staffers among its production units. Local newspapers like Haaretz says the job cuts will include 350 of its 7,000 employees in Israel.
The statement, sent to Endpoints News, notes:
Teva today announced the implementation of an additional stage in a reorganization and business focus process in Israel, which aims to strengthen the competitiveness of the sites. As such, the company is beginning a consultation process with the Histadrut and the unions of Kfar Saba and Teva Tech regarding the termination of employment of managers and employees at these two sites over the coming months.
The company will offer employees whose employment will be terminated favorable terms, and they will receive personal guidance and placement services, all designed to help them identify suitable alternatives in order to create employment continuity.
Pascal Soriot had been a hotly rumored candidate for the top job at Teva, reportedly planning to make a jump from the pharma giant AstraZeneca. Last week, though, he scotched those stories with memos to the staff outlining his plans to stay, with some key presentations to make in coming months.
Teva faces some tough prospects following a key loss in its patent battle to preserve its Copaxone flagship at a time that its generics business has been hit with eroding sales after recent deals left the company saddled with debt. Teva subsequently outlined a cost efficiency plan to root out any cuts that it could sensibly make.
“We are committed to do whatever it takes to ensure that our sites in Israel are competitive, efficient and have a sustainable business horizon. Teva will continue to invest in Israel – and in production sites in particular – in activities that strengthen our competitiveness globally,” said Yitzhak Peterburg, interim president and CEO.