Teva to Cut 2,900 Jobs by 2027 to Boost Profit Margins and Raises 2025 Forecast

Teva Pharmaceutical Industries announced plans to lay off approximately 2,900 employees — about 8% of its global workforce — by 2027 as part of a sweeping cost-cutting strategy to boost profitability. The move is part of the company’s goal to achieve a 30% operating profit margin by 2027.

Teva's Chief Financial Officer announced a call with analysts following the release of the company’s Q1 2025 financial results. The news sent Teva shares up 9% in New York trading, continuing a broader recovery trend that has seen the stock rise 15% since early April.

Teva reported first-quarter 2025 revenues of $3.89 billion, slightly below analysts’ expectations of $4 billion. However, adjusted net income came in at $0.52 per share, beating forecasts of $0.48. Quarterly revenue grew 5% year-over-year — a modest pace, but enough to reinforce investor confidence in the company's restructuring efforts.

Strong Drug Sales Drive Optimism

Sales of Teva’s flagship drug Austedo, which treats involuntary movements associated with neurological disorders, soared by 39% in the quarter, prompting the company to raise its full-year revenue forecast for the drug to $1.95–$2.05 billion.

Ajovy, Teva’s migraine treatment, also saw a robust 26% increase in sales. The company reiterated its full-year revenue target of $600 million for the drug. Combined, Teva’s core innovative medicines generated $589 million in revenue, each with growth of more than 25% year-over-year.

Upgraded Forecast for 2025

Following its strong performance, Teva raised its full-year 2025 revenue forecast by $200 million, now expecting between $16.8 and $17.2 billion. The updated outlook excludes revenue from its recently divested Japanese operations but still includes contributions from its API (active pharmaceutical ingredient) division, which it plans to sell. It also does not factor in potential milestone payments from Sanofi related to the development of Dovequitog, a treatment for Crohn’s disease.

The company also raised its operating profit forecast to $4.3–$4.6 billion, up from the previous range by $200 million.

CEO: ‘Acceleration Phase’ of Growth Strategy Begins

Teva President and CEO Richard Francis highlighted the company's momentum, stating:

“We started the year on a solid note, with our ninth consecutive quarter of revenue growth. Our core innovative medicines continue to show strong momentum… We are now entering the acceleration phase of our ‘return to growth’ strategy.”

Francis added that Teva is aiming to deliver approximately $700 million in net savings by 2027, streamline operations, and solidify its position as a leading biopharmaceutical company.

Stock Rebound Continues Despite YTD Losses

Following the Q1 report and cost-cutting announcement, Teva’s stock rose 9% in pre-market trading. The rally extended a broader positive trend that began in April, with shares gaining 15% over the past month. Still, the stock remains down 27% year-to-date due to investor concerns earlier this year over weaker-than-expected profit guidance.

Teva also noted that it does not expect any immediate impact from President Trump’s emerging tariff policy at this stage.