Teva shares were soaring on Thursday after the Israeli drug-maker announced that it will cut 14,000 jobs and suspend its dividend on ordinary shares.
The company announced that it would be slashing its workforce by 14,000 positions across the world.
With the move, Teva will be giving up several manufacturing plants and that many of the job cuts will be expected next year.
The restructuring plan with the job cuts is intended to cut Teva’s cost base by $3 billion by the end of 2019. The estimated cost base for this year is $16.1 billion.
Many have already been very displeased with the news of Teva doing this and Israel’s main labor federation has even called for protesting.
For next year, Teva is expecting a charge of at least $700 million from the restructuring. Recently appointed CEO Kare Schultz remarked, “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 also said, “In 2018, we expect to secure the successful launches of Austedo and fremanezumab.” Austedo and fremanezumab are treatments for complications that are a result from Huntington’s disease and migraines.
Disclaimer: We have no position in Teva Pharmaceutical Industries Ltd (ADR) ADR (NYSE: TEVA) and have not been compensated for this