In response to fierce generic competition, the Teva Israel plant cut 350 jobs

Monday, Teva announced it would cut 350 jobs at its Active Pharmaceutical Ingredients (API) plant in Neot-Havav, Israel. The job cuts are understood to be part of Teva's Global Optimization Program, which aims to streamline site operations and staff by February 2022.spokeswoman forTeva said that for the Neot-Havav plant, the company plans to streamline the site's operations by making significant changes to production volumes, product lines, facilities, and the number of employees needed to make the site efficient and sustainable.Teva stated that the layoffs were not effective immediately and that the company would complete the layoffs by the 2022 deadline and would provide employees affected by the layoffs with "fair separation benefits that exceed the requirements of the law or collective agreement.", the plant's president, said, "Any process involving change, especially streamlining and downsizing, is painful." However, it is necessary to ensure the future of the plant and to secure employees who continue to work at the site. We are confident that this process will restore the Neot-Havav plant to competitiveness and enable us to continue to increase the strategic focus of Israel's global activities in Teva. Increased , particularly in the Far East, and high production costs in Israel have made the Neot-Havav plant costly and un competitive compared to other Teva plants and other drugmakers. Over the past decade, Teva has invested $300 million in the Neot-Havav plant in an attempt to regroup, but to no re-operation.'s round of streamlining was announced in February, ending a 30-year restructuring project aimed at saving $3 billion, which has cut about 13,000 jobs worldwide. In the streamlining process, which began in the second half of 2017, Teva closed or sold 23 production sites, as well as 40 offices and laboratories., Teva is now restructuring as part of its core business in an attempt to shake off performance pressures from competition in the generics sector. Fierce competition for generics around the world has led to a general decline in profits in the company's product line, and Teva has had to turn to growth in its own brands, including migraine drugs Ajovy and Huntington's Austedo. However, even if the restructuring is completed, the asset position in the Teva generics portfolio is not encouraging.based on the company's disastrous financial position over the years, Teva's restructuring strategy, led by Chief Executive Officer Kåre Schultz, is based on a $3 billion reduction plan. To date, the financial situation has not improved significantly, and Teva still has a large amount of debt to repay. In addition, during the new crown pandemic, Teva's financial position will become more challenging as uncertainties increase. As of June 30, 2020, the company's cumulative debt had reached $26.3 billion.
(Sina Pharmaceutical News)Source: 1.Teva, on the heels of major reorg, plans to cut 350 more manufacturing jobs in Israel 2.Drug maker Teva to fire 350 workers in efficiency bid for southern Israeli plant