Jobs under threat at Castleford pharmaceutical HQ
Israeli company Teva Pharmaceuticals, which employs around 770 staff at its Teva UK headquarters in Castleford, 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 would be in Israel.
The company is currently struggling with $35bn of debt as a result of competition and increasing competition. Dividend payouts to shareholders are also being suspended as Teva targets the equivalent of £2.3bn of savings within two years.
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.”
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
