With No Buyers, Teva to Close Israeli Medical Equipment Plant
The facility in Ashdod is one of five Teva intends to sell or close in its home country
For daily updates, subscribe to our newsletter by clicking here.In December, Teva announced a reorganization plan aimed at reducing the company's debt of over $30 billion, accrued as a result of the 2016 acquisition of Allergan's generic business Actavis, which failed to pay off as the conditions in the generic drug market worsened. The company stated it will let go 25% of its employees by 2019, and close or sell over 20 facilities.
According to the announcement, half the employees will be let go in the upcoming months, while the rest will stay until the plant's final closure in March 2019. Teva stated it will provide the employees with appropriate layoff terms, as well as placement and retraining assistance.Avi Nissenkorn, the chairman of Israel's biggest labor union who has been at the helm of the protests against the layoffs, criticized Teva's announcement.