Post a Comment Print Share on Facebook

Teva, the largest generic drug company, will dismiss 14,000 employees, 25% of its global workforce

Israel's union headquarters reacts with the call for a general strike threatening to paralyze the country

- 65 reads.

Teva, the largest generic drug company, will dismiss 14,000 employees, 25% of its global workforce

The pharmaceutical group Teva, largest international manufacturer of generics and first private Israeli company, announced this Thursday dismissal of 14,000 employees, a fourth of its global workforce, to face a debt of about 30 billion euros. The hegemonic union Histadrut has convened a general strike this Sunday, first day of working week in Israel, which threatens to paralyze public sector in Jewish state in view of projected loss of 25% of 6,800 jobs that counts Company in country after closure of two plants. " We will execute restructuring plan in an orderly and prudent manner to ensure that Teva meets its financial obligations, "said Kare Shultz, CEO of Teva, a Danish executive hired six weeks ago with mission to save Pharmaceutical bankruptcy, in statements collected by Israeli economic newspaper Globes.

The company, which has also frozen payment of dividends to its shareholders and bonds to its executives, acquired last year British generic drug manufacturer Actavis, with 10,000 employees, for which it contracted a debt of 35 billion dollars, Which should return a quarter in next two years.

This operation occurred at a time of trend towards reduction of generic prices in international markets and when exclusive patent on Copaxone drug for multiple sclerosis was about to expire, which has been main source Revenues on which Teva underpinned its expansion.

The Secretary general of Israel's former single central trade union, Avi Nikesson, has warned that general strike "in solidarity with dismissed workers" convened throughout Sunday morning would paralyze state enterprises, airports, Ports and central and local administrations as well as banks and Tel Aviv stock Exchange.

"This company, which was flagship of Israeli economy, has become a symbol of destruction of industrial fabric. He grew up thanks to innovation of Weizmann Institute [Point Research Centre] and is now ceasing to be an Israeli company, "he appealed to patriotism union leader after remembering that Teva has benefited from about 6 billion dollars in deductions Over last decade in exchange for commitment to maintain ir presence and level of employment in Hebrew state.

Of 57,000 employees in company's payroll worldwide, 42% are located in Europe. Teva has a production plant and a logistics center in Zaragoza with a workforce of 350 workers.

Israeli Prime Minister Benjamin Netanyahu has asked CEO Schulz to minimize impact of labour adjustment on economically depressed areas of country, such as Upper Galilee (north) and Negev region (south), and to preserve identity Israeli company.

"The hardness of restructuring reflects severity of crisis. The majority of managers responsible for this situation, including former CEO, have already left company with generous compensation in ir settlement, "argues in pages of Haaretz financial analyst Sami Peretz. "It is now turn of workers in a country like Israel where production costs are higher."


You have to login for comment. If you are not a member? Register now.

Login Sign Up