Teva fast-tracks $2bn cost-cutting plan with 10% workforce reduction
Last December, Teva Pharmaceutical Industries announced to stakeholders it was to divest non-core assets, increase organization effectiveness, improve manufacturing efficiency and reduce excess capacity, in a bid to reduce annual costs.
Teva’s statement last week was “just an acceleration of that plan, with a headcount reduction target,” company spokesperson Denise Bradley told in-Pharmatechnologist.com, with approximately 10% of its global workforce to be given the axe in the year to come.
Since the plan was announced, a manufacturing facility in Irvine, California was put up for sale and another in Sellersville, Pennsylvania, was earmarked for closure.
However, regarding future closures and areas of job loss, Bradley said: “We have not taken any decisions yet on reductions in specific businesses. We are undergoing a planning process to do that, which will culminate in the 2014 work plans.”
She continued: “Teva will strike a balance by scaling down parts of the company that are over-resourced, against investing in other strategic parts in an effort to accelerate value creation and deliver long-term sustainable growth for Teva.”
The Israel-headquartered company’s CEO, Jeremy Levin said in a statement: “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.”
The news comes just a fortnight after Merck & Co. (known as MSD outside North America) announced it was pursuing a restructure to save $2.5bn per year, with up to one in five of its workforce to be let go.
