Teva Pharmaceutical Industries, the debt-ridden Israeli drugmaker, is considering cutting as many as 10,000 jobs as new Chief Executive Officer Kare Schultz seeks to pare costs, according to people with knowledge of the matter, Bloomberg reported.
The company aims to reduce expenses by $1.5 billion to $2 billion over the next two years, with a little less than half of the cuts linked to research and development spending, the people said, asking not to be identified as the discussions are confidential. The drugmaker also doesn’t plan to proceed with an equity offering in the near term, they said. The stock jumped to its highest in almost two months.
No final decision has been taken, and the targets may be modified, with a range of 5,000 to 10,000 jobs being discussed, the people said. That would account for more than 15 percent of the total staff. A representative for the Petach Tikva, Israel-based company declined to comment.