500 jobs at pharmaceuticals manufacturing site under threat

Israeli company Teva Pharmaceuticals which employs about 500 people at its Runcorn, Cheshire manufacturing facility has announced plans to cut 14,000 jobs worldwide – 25% of its total headcount.

The company – the world’s largest generic medicines specialist – said nearly half of the job losses, some 6,400, will be sustained in Israel.

Meanwhile, dividend payouts to shareholders are also being suspended as Teva targets the equivalent of £2.3bn of savings within two years.

The company is currently struggling with $35bn of debt as a result of competition and increasing competition.

Teva’s recently-appointed chief executive Kare Schultz said: “We are launching a comprehensive restructuring plan, crucial to restoring our financial security and stabilizing our business.

“We are taking immediate and decisive actions to reduce our cost base across our global business and become a more efficient and profitable company.

“We will execute this plan in a timely and prudent manner, remaining focused on revenue and cash flow generation, in order to make sure Teva is ready to meet all of its financial commitments.

He went on: “These are decisions I don’t take lightly but they are necessary to secure Teva’s future.

“We will implement these changes with fairness and the utmost respect for our colleagues worldwide.

“Today’s announcement is about positioning Teva for a sustainable future which we will achieve with our talented people. We will ensure that we continue to provide high quality medicines to the many patients we serve every day, while adhering to the highest standards of GMP compliance.”

The company aims to reduce its current expenses of $16.1bn by cutting layers of management and simplifying business processes.

It said it will also close or sell a significant number of manufacturing plants, research and development facilities, headquarters and other offices.

The majority of the 14,000 job cuts are expected to occur in 2018, with most of the affected employees being notified within the next 90 days