The largest manufacturer of the generic drugs worldwide and a national celebrity of Israel, Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is facing rough weather both among the public and workers as well. The company is well known in Israel as the people’s stock because most of the pension funds are invested its stock.
The company has a pride on par with General Motors Company (NYSE:GM) of the US. Internationally recognized and home grown largest employer in Israel is facing the music for its misdeeds like losing patent on one of the drugs and missteps of the management. The market cap of the company is declined by more than $20 billion since the beginning of 2017.
Teva Decides to cut 25% of the workforce
The company has announced slashing 14,000 jobs including 1700 jobs in Israel on December 14. Teva also staged a decision to divest parts of the company and shutdown manufacturing facilities. The company also suspended stock dividends and canceled the bonuses creating alarm bells for both the investors and the public.
The bad news has not shattered the confidence of investors and the stock gained almost 14%.
Mr. Benjamin Netanyahu, the Prime Minister of Israel, has said he would urge the company to retain the Israel Identity. He would extend all the necessary help to keep the Jerusalem plants running. The company enjoyed subsidiaries and tax breaks worth $6 billion in the last 10 years.
The Prime Minister Office after the meeting of PM with Mr. Kare Schultz, Chief Executive Officer of Teva, has announced to ready the training for fired staff so that they can find new jobs.
Mr. Kare Schultz has announced his inability to respect the request of the PM and said the closure of the Jerusalem plant is inevitable. It is part of the measures to maintain Teva as a strong company in both Israel and overseas.
The company is finding ways to tackle the debt of $35 billion and is in discussions with bond holders and banks.
There is a large outcry both among the public and workers as well in Israel at Teva Plants. Many of the government establishments and banks are forcibly closed in the protests.