Teva to fire at least 3,000 in Israel

Kare Schultz Photo: PR

The pharmaceutical company will close down most of its production operations in Israel, sources inform "Globes."

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) will fire at least 3,000 employees out of its workforce of 7,000 in Israel, sources inform "Globes." The pharmaceutical giant will close down most of its production operations in the country.

One employee told "Globes," "There is chaos in the corridors and a feeling that the house is collapsing. Nobody in management is talking to us."

As previously reported by "Globes," Teva will close down and sell its Kiryat Shmona Migada disposable medical equipment plant and cut 505 of its workforce in the Petah Tikva head office. All R&D operations in Netanya will be closed down and other operations will be sold off.

Over the past few hours, several of Teva's workers committees have contacted the Histadrut (General Federation of Labor in Israel) to mobilize against the cuts and assist Teva's employees. One senior workers committee representative told "Globes", "We are demanding a response that will shake up the entire country. A strike at Teva won't affect the new CEO Kare Schultz."

Earlier today, the heads of all Teva workers committees met. They said they had not been briefed about the details of the company's planned cutbacks, and were waiting for Histadrut chairperson Avi Nissenkorn's meeting with the company's management tomorrow. Meanwhile, no one from management had met with the workers committees' heads.

Teva Petah Tikva workers committee chairperson Daniel Shabtai said today, "To the best of our understanding, the plan is to fire 500 of our workers. 1,540 people work in Petah Tikva, and the million-dollar question is whether most of them will be from the 860 represented workers, meaning workers who are not managers, or from management levels with higher salaries. Management is planning a quick and clinical measure, and relying on a weak response for the Histadrut. In my opinion, the Histadrut's response will be harsh. They're counting on the Israeli government not intervening, and I hope that they're wrong."

Published by Globes [online], Israel business news - - on December 13, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Kare Schultz Photo: PR
Kare Schultz Photo: PR
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018