Teva Pharmaceuticals to Cut 25% of Jobs in Huge Reshaping
Teva Pharmaceuticals, the world’s biggest maker of generic drugs, said on Thursday
that it would cut about a quarter of its work force, or 14,000 jobs, close manufacturing and research facilities and suspend its dividend as it seeks to simplify its structure and reduce its debt.
The company said it expected to take a restructuring charge of at least $700 million next year, mainly related to severance costs,
and could take additional charges tied to the closing of manufacturing plants, research facilities and other offices
“We will execute this plan in a timely and prudent manner, remaining focused on revenue
and cash flow generation, in order to make sure Teva is ready to meet all of its financial commitments,” Mr. Schultz said in a news release.
“Teva will optimize its cost base while ensuring that we protect our revenues
and preserve our core capabilities in generics and in select specialty assets, in order to secure long-term growth,” added Mr. Schultz.
The massive reshaping of Teva came just over two years after it agreed to buy the generic drug business
of Allergan for $40.5 billion amid a rush of consolidation in the pharmaceuticals industry.