Teva Pharmaceuticals reached agreement with Israel’s Histadrut labor federation on Thursday to award preferential severance packages to company administrative staff taking voluntary redundancy, both sides said in a statement.
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The move is part of a global restructuring by the world’s largest generic drugmaker in which it plans to cut more than a quarter of its workforce, or some 14,000 jobs.
Under a two-year plan, Teva aims to reduce costs by $3 billion by the end of 2019, from about $16.1 billion in 2017. Some 1,700 jobs are expected to be lost in Israel and workers have protested since the cuts were announced.
“After weeks of talks, the Histadrut and the workers’ committee and the company’s management reached an agreement today to give the administrative staff honorable severance packages,” Teva and the Histadrut said in a joint statement.
It did not say how many staff were involved in the deal, but it added that if further redundancies are required beyond the voluntary stage, dismissed workers would also receive increased severance packages and other assistance to help them find other jobs.