Why Is Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) Trimming 5,000 Jobs?
By 2014-end, Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) plans on cutting-down around 5,000 jobs. The objective of this mowing operation is to add efficiency levels to the company’s operations. On Thursday, the company that is based in Israel said that globally, it has around 46,000 employees and this planned cut will amount to a 10% reduction in its existing workforce.
Trimming operation underway
The plan is to axe the segments that are oversized and superfluous and concentrate on its core and generic development and research programs. It wants to divert funds from these cuts into areas that it feels have more potential such as specialty-pharma products and complex generics.
Emerging market potential
Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) also wants to expand its reach into various emerging markets and expand its existing product portfolio, specifically in the OTC drugs segment. Many other pharma accompanies are targeting countries like China and Brazil and feel that these are the emerging markets that have a great deal of potential. At the start of 2013, the company announced that it would be shuttering its Sellersville, Pennsylvania generic-drug plant by 2017. This plant has around 450 employees. Another plant in Irvine, California may be put up for sale.
Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) said that all these moves are part of a larger restructuring plan that it wants to implement across its international operations and one which it had announced way back in 2012.
In Thursday’s trading, Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) rose by 3.55%. The opening price of the shares was $40.35, which climbed to an intraday high of $40.85 and dipped to a close of $40.59. Approximately 11.28 million shares were traded on Thursday while an average volume of 3.26 million shares were traded over a 30 day period. The 52-week low of Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) shares is $36.63 and its 52-week high is $42.83.