Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) stock was on its way up today on talk of job cuts.
A recent report claims that Teva Pharmaceutical Industries Ltd (ADR) is possibly looking to cut as many as 10,000 jobs. According to this report, the end goal of the job cuts would be to reduce its expenses.
Teva Pharmaceutical Industries Ltd (ADR) has massive amounts of debt that it needs to deal with and cutting costs with the job cuts could be good news for TEVA stock. The reports claims that the company is considering lowering its number of employees by somewhere between 5,000 and 10,000.
The talk of job cuts at Teva Pharmaceutical Industries Ltd (ADR) come with additional cost savings efforts the company may be working toward. This includes cutting research spending. In total, it appears the company wants to reduce costs by $1.5 billion to $2.0 billion in the next couple of year, reports Bloomberg.
The new job cuts are reportedly the idea of Kåre Schultz, Teva Pharmaceutical Industries Ltd (ADR)’s new CEO. Schultz took over the position of CEO in early September. Schultz has a history of helping companies with restructuring efforts, which seems to be just what TEVA needs.
In fact, we’ve already seen Schultz’s influence on the company since he took over in September. This includes some restructuring that was announced in late November. This had the company changing its leadership structure to create a more streamlined operation.
TEVA stock was up 5% as of Friday morning, but is down 57% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.