Teva Pharmaceutical Industries Ltd (NYSE: TEVA) rose Friday, amid reports the company will lay off 20% to 25% of its Israel workforce, plus few thousand in the U.S.
The world's largest generic drugmaker will send termination letters to "tens of percents" of its 10,000 employees in the United States in the coming weeks
Teva's new Chief Executive Kare Schultz is working out the details with regional management in Israel and the United States, according to the reports, adding that those set to be ousted include its chief scientific officer and president of research and development, Michael Hayden.
Teva is widely expected to implement a cost-cutting program following the publication of third-quarter results earlier this month.
The company said it would miss 2017 profit forecasts due to falling prices of generics in the U.S. market and weakening sales of its multiple sclerosis drug Copaxone.
Saddled with nearly $35 billion in debt due to its $40.5-billion acquisition of Allergan's generic drug business Actavis last year, investors have been pushing Teva for clarity on its future.
Interim Chief Financial Officer Mike McClellan has said the company was "working on a 2018 plan and evaluating all options".
Teva has been selling off assets to help meet its debt payments.
Fitch Ratings this month downgraded Teva's debt to junk.
Teva’s U.S. operations are a wholly-owned subsidiary of Israeli-based Teva Pharmaceutical Industries Ltd., the global leader in generics and one of the leading pharmaceutical companies in the world. Teva's extensive U.S. operations are headquartered near Philadelphia
Shares in the company vaulted 20 cents, or 1.5%, to $13.68.
Related Stories
