Teva To Cut 10% of Staff

Teva Pharmaceutical Industries Ltd., as part of its worldwide restructuring program introduced in December 2012, will reduce its global workforce by approximately 10% (5,000 employees), and will complete the majority of the reduction by the end of 2014. Teva will also evaluate whether it needs to trim assets that no longer fit its core business. The company plans to scale down “oversized parts” of the company while growing its generics business and core R&D programs, including expanding its presence in emerging markets and broadening its portfolio in its specialty medicines and OTC businesses.
 
Total costs for the corporate restructuring program are estimated to be approximately $1.1 billion. The company expects save $2.0 billion in annual costs by the end of 2017, 50% of which will be realized by the end of 2014, and 70% by the end of 2015. The majority of the savings are expected to come from a reduction in the company’s cost of goods. Teva plans to reinvest part of the initial savings in the development of the company’s complex generics and specialty pharmaceutical pipeline.
 
Dr. Jeremy Levin, president and chief executive of Teva, said, “Teva is managing its operations to achieve high levels of effectiveness in the short term, while pursuing opportunities for the long term. The accelerated cost reduction program will strengthen our organization while improving our competitive position in the global marketplace. We understand that this may be a difficult time for our employees and are committed to act with fairness, integrity and respect, and provide support during this time.”