by Christopher Freeburn | October 10, 2013 9:27 am
Shares of Teva Pharmaceutical Industries (TEVA) surged more than 3% in pre-market trading on Thursday after the company announced a significant paring of its payroll.
The drug maker said it will restructure its operations with a goal of saving about $2 billion a year by 2017. As part of the plan, it will shed 5,000 workers, roughly 10% of its total number of employees, Bloomberg notes.
Teva is facing the prospect of cheaper generic competitors for Copaxone, its multiple sclerosis treatment, hitting the market as early as next year. Teva is looking to boost its pipeline of new drugs for nervous system and respiratory problems.
The company reiterated previously stated estimates for 2013 earnings and revenues.
Teva joins a number of big companies slashing their payrolls. Earlier this month, Merck (MRK) said it would cut 8,500 jobs across its research and development operations as part of a move to trim costs by $2.5 billion by 2015.
Last month, Citigroup (C) announced plans to eliminate 1,000 jobs in its mortgage lending unit.
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