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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)
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.

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