The government can refuse to give tax breaks to Teva but they cannot order the company not to lay people off. If the company decides as we are not going to get our tax breaks anymore so we will lay people off to make up for the loss of profits we would have made though tax breaks then thats their choice. Government must remember though that whilst they might be giving Teva tax breaks they will be paying out the unemployment money to those people Teva have just fired. This is the reality of the world of big business, no profit they dob't do it in this case continue to hire as many people as they did.
from the article: Teva mass job cuts a slap in the face of Israel