Israeli drugmaker Teva to cut quarter of global work force

A picture taken on Dec. 14, 2017 shows the Jerusalem Teva plant, the world’s biggest manufacturer of generic drugs. Teva is to announce a cost-cutting program today that will include thousands of layoffs, according to widespread media reports. The Calcalist business newspaper said Teva intended to “cut over 4,000 jobs, mainly in the US and Israel” as it was saddled with almost $35 billion in debt. (AFP/Thomas Coex)
Updated 14 December 2017
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Israeli drugmaker Teva to cut quarter of global work force

JERUSALEM: Teva Pharmaceutical Industries Ltd., the world’s largest generic drugmaker, says it is laying off 14,000 workers as part of a global restructuring.
The company said Thursday that the layoffs represent over 25 percent of its global work force. The job cuts are to occur over the next two years, with most of them expected in 2018.
In a letter to employees, Chief Executive Kare Schultz says the restructuring is “crucial to restoring our financial security and stabilizing our business.”
Teva’s bottom line has been hit by the expiration of patents on Copaxone, a drug for multiple sclerosis; pricing pressure on its core generics business and a $35 billion debt load taken on in its acquisition of the generics business of Allergan.
Teva’s stock has skidded nearly 60 percent this year.


Hajj season boosts Middle East hotel demand in August

Updated 5 min 32 sec ago
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Hajj season boosts Middle East hotel demand in August

  • Occupancy rates — a measure of the proportion of available rooms sold — in the region jumped to 63.4 percent from 62.1 percent
  • The average daily room rate — another key industry metric — increased 12.2 percent to reach close to $170 per night

LONDON: Demand for hotel rooms across the Middle East leapt last month providing welcome relief for an industry that has been grappling with an oversupply of hotel accommodation, new data showed.
Occupancy rates — a measure of the proportion of available rooms sold — in the region jumped to 63.4 percent from 62.1 percent, according to data provider STR’s research published on Sept. 24.
The average daily room rate — another key industry metric — increased 12.2 percent to reach close to $170 per night, while revenue per available room (RevPar) increased by 14.5 percent to reach $107.50.
The region’s hotel sector has been under pressure due partly to the impact of low oil prices and geopolitical risks, resulting in a slump in room revenue and occupancy as supply exceeded demand.
“It is true in the broader sense that we have been seeing a softening of market-wide RevPar levels in the hospitality sector across most major cities within the GCC countries,” said Ali Manzoor, partner, hospitality and leisure at property consultancy firm Knight Frank.
Analysts have blamed the year-on-year uptick in August on the earlier Hajj season and Eid Al-Adha holiday, rather than indicative of a change in outlook for the sector.
“The spike in occupancy levels in August was largely attributable to differences between the Gregorian and Hijri calendars,” Manzoor said.
This year, the pilgrimage period took place in August, helping to boost the industry’s performance that month. “It is therefore reasonable to expect hotels to underperform in the month of September in relation to last year,” he said.
Looking at data for the year-to-date, the UAE retains the highest occupancy rate in the Gulf region at 72.2 percent, though this represents a slight decline of 0.8 percent compared to the same time period last year, according to STR data.
Saudi Arabia’s occupancy levels stood at 58.1 percent year-to-date, marginally up by 0.2 percent on last year.