Exclusive: Teva to fire 500 managers in Israel

Teva Photo: Reuters

"Globes" has learned about Teva's streamlining plan, which includes 250 layoffs in the Migada Kiryat Shmona plant, which will be closed.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) will announce later this week that it is firing at least 500 management staff in Israel as well as hundreds of production workers sources inform "Globes."

According to a source acquainted with the subject, Teva will fire 250 employees at its Migada plant in Kiryat Shmona, and close down the plant, which produces medical equipment.

Teva has been keeping details of its layoff plans secret from the Histadrut (General Federation of Labor in Israel) and government ministries and is not expected to reveal its streamlining and recovery measures to them until Thursday. Employees who are being laid off will be informed early next week. 

Teva will also ask former senior executives to return bonuses worth millions of shekels.

Teva said, "We do not comment on rumors."

Teva is expected to cut between 10,000 and 20,000 jobs worldwide in attempts to reduce the company's $35 billion debt assumed in the $40 billion acquisition of Allergan's generic division Actavis.  

Published by Globes [online], Israel business news - www.globes-online.com - on December 11, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Teva Photo: Reuters
Teva Photo: Reuters
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