Teva Pharmaceuticals 'to fire thousands of its workers'
23 November 2017 -

Teva Pharmaceutical Industries (TLV: TEVA) is expected to cut 20-25% of its 6,860-strong workforce in Israel, financial news website Calcalist reported on Thursday.

At least 1,000 more in the United States are also poised to lose their jobs, according to reports. The world's largest generic drugmaker will send out termination letters to a significant proportion of its 10,000 US employees in the coming weeks.

The news comes as the embattled CEO Kare Schultz continues to sell off the company's assets to meet its debt payments. It is part of Teva's cost-cutting programme, which is expected to be rolled out imminently.

The company published its third-quarter results earlier this month. Teva expects to miss its 2017 profit forecasts because of the falling prices of generics in the US as well as the steadily declining sales of its multiple sclerosis drug Copaxone.

"It will be an absolute priority for me that we stabilise the company's operating profit and cash flow in order to improve our financial profile," Schultz said in a post-earnings call with analysts.

Meanwhile, interim chief financial officer Mike McClellan commented that the company was "working on a 2018 plan and evaluating all options".