About 200 Teva employees at the Kfar Saba pharmaceutical plant will be laid off by the end of the year

198 Teva employees at the Kfar Saba pharmaceutical plant will be laid off by the end of the year. Most of them retired early. This was agreed between the Histadrut and the workers' committee. Employees who do not retire early will receive increased compensation packages. The company explains that the reduction of manpower was done as part of "optimization processes designed to improve the competitiveness of the plant and ensure it a sustainable future as one of the strategic sites of sterile production in nature in the long term."
The move is part of the global streamlining process that Teva's management has been using at the company's plants in recent years. To date, Teva has laid off about 2,000 workers in Israel, and today more than 3,500 workers are employed in the country. This is a direct continuation of the biennial global reorganization process, which ended at the end of 2019 and resulted in annual savings of about $ 3 billion in company costs, compared to 2017.
The company said that in the generic industry, which is characterized by intense competitiveness, production costs are a key and sometimes even crucial parameter. Production is significantly lower. "
Teva's Global Operations Manager, Eric Drapa, said that "the launches of most of the new products in the pharma industry are relatively small, so although we are successfully launching many new and high quality products from Kfar Saba, they can not be a substitute - for our need for employees - for large volumes. Who left the factory. "
Teva's revenues in the second quarter of 2021 were less than forecast and totaled $ 3.9 billion. The company reduced its annual revenue forecasts to $ 16.4 billion from $ 16.8 billion. Net income for the second quarter amounted to $ 207 million compared to $ 140 million in the corresponding quarter - an increase of 35.9%.
Teva operates the global headquarters in Israel alongside two production sites: the Teva Kfar Saba plant and the Teva Tech plant and 3 research and development centers and an advanced logistics center in Shoham.