Teva Pharmaceutical to Cut 14,000 Jobs
December 14 2017 - 8:15AM
Dow Jones News
By Austen Hufford
Teva Pharmaceutical Industries Ltd. is cutting more than 25% of
its workforce and suspending its dividend as the company works to
cut costs and pay down debt.
Teva said a two-year restructuring plan, which is expected to
result in about 14,000 job cuts globally, will cut its total cost
base by $3 billion by the end of 2019, out of an estimated $16.1
billion in 2017.
"We are taking immediate and decisive actions to reduce our cost
base across our global business and become a more efficient and
profitable company," Chief Executive Kare Schultz said in a news
release.
The company said it would record a restructuring charge of at
least $700 million in 2018, mainly related to severance costs.
The dividend suspension impacts both its ordinary shares in Tel
Aviv and American depositary receipts trading.
In August, Teva lost about a quarter of its market value in one
day on mounting concerns about the future of the company after it
cut its full-year outlook and slashed its dividend, blaming the
rapid deterioration of the U.S. generic-drug business. Teva took a
$6.1 billion write-down on that unit and posted a quarterly net
loss of $6.04 billion.
In September the company appointed Mr. Schultz, a nearly 30-year
pharma industry veteran, as CEO to craft a path forward.
ADRs in Teva rose 7.3% in New York premarket trading.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
December 14, 2017 08:00 ET (13:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Teva Pharmaceutical Indu... (NYSE:TEVA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Teva Pharmaceutical Indu... (NYSE:TEVA)
Historical Stock Chart
From Apr 2023 to Apr 2024