Teva Pharmaceutical Industries (NYSE:TEVA) confirmed a set of layoffs will take place as the company tries to get ahold of the challenges that have plagued the company for the past year.
The pharmaceutical company found itself in the middle of some confusion today as it was reported by two Israeli news sites that the company would be letting go of thousands of employees.
“Teva is expected to start a worldwide wave of layoffs that will include 5,000 employees, including hundreds in Israel,” read the story from Calcalist, an Israeli financial news website that reported hundreds had already lost their jobs in Israel.
Reported numbers were wrong according to Teva
In a statement to Reuters, the company said those reports were incorrect. “These processes are conducted through a continuous open dialogue with the employees.”
The company also said they would be “freezing recruitment” immediately.
Newly appointed interim president and CEO Dr. Yitzhak Peterburg said in a financial update last month, that while the company is still moving forward through a turbulent and evolving industry, he would be conducting a “thorough review” of the business overall.
Teva employs close to 57,000 people around the world. The company had reported that as of December 31, 2016, its debt totaled $35.8 billion. Earlier this year FiercePharma reported Teva had to cut a billion dollars from their 2017 sales guidance.
Over a one-year period, Teva’s share price has gone down 39.48 percent, it currently trades at $32.73.
GEN reported that Teva could be facing generic competition to its drug Copaxone due to a federal court invalidating four patents. Copaxone is used to treat multiple sclerosis (MS) and to prevent relapse of MS, which affects nerves in the human body.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.