Israeli drug maker Teva Pharmaceutical Industries Ltd. could soon be cutting as many as 10,000 jobs.
The company’s recent CEO Kare Schultz is looking for ways to cut costs according to sources familiar with the situation.
There is a range of 5,000 to 10,000 jobs being discussed which would mean 15% of the company’s workforce. The company had in total almost 57,000 people working for it across the world at the end of 2016.
According to the unidentified sources, Teva is looking to cut its expenses by $1.5 to $2 billion over the next couple of years and that a little less than half of the cuts would come from research and development spending.
The sources also said that the company is not going to be proceeding with any equity offering anytime soon.
After the news, Teva shares soared to their highest in almost 2 months, and were up 6% as of 10:44 a.m. on Friday.
Since the year started, shares have fallen nearly 60%.
Disclaimer: We have no position in Teva Pharmaceutical Industries Ltd (ADR) ADR (NYSE: TEVA) and have not been compensated for this article.