The cutbacks at pharmaceutical firm Perrigo Company (NYSE:PRGO; TASE:PRGO) are affecting the company's employees in Israel, although to a relatively small extent. Sources inform "Globes" that as part of the measures recently announced by Perrigo designed to reduce the number of non-production workers by 750, 20 employees are being laid off in Israel in Bnei Brak and Yeruham, 1.8% of Perrigo's employees in Israel. "Globes" previously reported that Perrigo was also seeking a buyer for its plant in Ramat Hovav.
Perrigo said, "As part of Perrigo's streamlining by cutting 750 non-production jobs worldwide, the company will eliminate 20 jobs in Israel, some in the company's plant in Yeruham and some in staff positions in Bnei Brak, out of the 850 workers in these units and a total of 1,150 workers in Israel. Perrigo will offer some of the workers alternative jobs in other areas. Workers leaving the company will receive better severance terms than required by law or by employment agreements, and support during the transition period."
Managed by CEO John Hendrickson, Perrigo is undergoing a crisis, reflected in the company's financial result and share price. Since Perrigo shareholders rejected the acquisition offer from Mylan N.V. (Nasdaq: MYL; TASE: MYL) in 2015, with encouragement from Perrigo's management, the Perrigo share has plunged 58%. The company's current market cap is $9.5 billion. Perrigo postponed its 2016 financial statements, following a review of its recognition of past revenue, mainly for the Tysabri drug for treatment of multiple sclerosis.
Published by Globes [online], Israel Business News - www.globes-online.com - on April 24, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017