Last week Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) published its first quarter results for 2025 and unexpectedly announced plans to lay off 8% of its workforce by 2027 – almost 3,000 employees. The aim, Teva said, is cost savings of $700 million.
The market liked the announcement and the fact that Teva also raised its guidance and the company's share price rose 12% in two days, although it fell back on Friday. Since the start of the year, Teva's share price has fallen 23%, giving a market cap of $19 billion. However, Teva has known tougher days, and in fact the share price has risen 25% over the last month, even after Friday's 6.31% fall.
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Teva is not detailing at this stage which employees it will lay off. In Israel, the company has several sites, and as of the end of 2024 the company had 3,320 employees – just over 9% of the company's total workforce. At its peak in 2012, Teva had about 7,400 employees in Israel.
Market sources believe that the rate of layoffs in Israel will be similar to the general rate (8%) or slightly higher, and will not affect all of Teva's sites in Israel. This will mean about 250-300 layoffs. It is believed that the cuts will come mainly from employees at the headquarters in Tel Aviv, the R&D unit in Netanya, and the plant in Kfar Saba, with employees at some locations being offered voluntary retirement, in line with collective agreements previously signed between the company and the unions and the Histadrut. Discussions are already underway, it is believed, between Teva and the unions on the subject. These talks began even before Teva's announcement last week on the streamlining plan.
The number of Teva employees will decrease regardless of the new plan, when Teva completes the sale of its active pharmaceutical ingredients division (TAPI), which was previously announced. TAPI has about 4,300 employees, of whom several hundred are in Israel.
Published by Globes, Israel business news – en.globes.co.il – on May 11, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
