Teva Pharmaceutical Industries Ltd. plans to cut about 5,000 employees, most by the end of next year, as part of a restructuring designed to make the Israeli company more efficient.
Teva employs about 46,000 people worldwide. It plans to trim parts of its business while enlarging its generic and core research and development programs. It plans to reinvest savings from the cuts in what it considers to be areas with high potential, like development of complex generics and specialty products.
It also wants to increase its presence in emerging markets and broaden its product portfolio, especially with over-the-counter drugs. Many drug makers are targeting emerging markets like Brazil and China for growth.
Earlier this year, Teva said it would close by 2017 a Sellersville, Pa., generic drug plant that employs about 450. It plans to sell a plant in Irvine, Calif.
Teva expects to save about $2 billion annually by the end of 2017, largely due to a reduction in the company’s cost of goods. Teva is one of the world’s largest generic drug makers; it also has made a push to build up its branded medicines business.