Teva’s far-reaching cost cuts are hitting close to home—not just in Israel, but at its North American headquarters, too.
The embattled company is laying off more than 200 workers in and around its North Wales, Pennsylvania, home base, it said in a WARN notice filed with the Pennsylvania Department of Labor and Industry. Those layoffs are effective Friday.
Specifically, the generics giant has pink-slipped 65 employees across three buildings in Horsham, Pennsylvania, and North Wales, 96 across sites in Fraser and Great Valley, Pennsylvania, and 47 more at a West Chester, Pennsylvania, location.
The layoffs come as part of new Teva CEO Kåre Schult's plan to squeeze $3 billion from the company’s annual costs as it struggles under some serious dealmaking debt. In December, the company said it would pare down its workforce by 25%, shedding thousands more jobs than industry watchers expected.
The news did not go over well in Israel, which was tapped for 3,000 of the planned cuts. Government offices, banks, schools, health services, Israel’s main airport and more shut down as part of a nationwide strike, and key officials urged Schultz to shutter plants in Ireland to spare Israeli jobs. Ultimately, they secured a reprieve for 140 workers—but only a temporary one.
In the U.S., meanwhile, Teva has said it intends to consolidate seven office locations under one roof, and the location of that main campus isn’t yet known, the Philadelphia Business Journal noted. That could mean a move for its North American headquarters.
“Those decisions are still being made,” a spokeswoman told the Journal.