Teva Pharmaceutical is to cut 14,000 jobs over next two years, in a restructuring aimed at cutting costs.
"Teva is taking decisive and immediate action to address external pressures and internal inefficiencies. Our new company structure will enable stronger alignment and integration between R&D, operations and the commercial regions, allowing us to become a more agile, lean and profitable company," said the company's chief executive, Kare Schultz.
"We will focus on driving sustainable value creation. The new management team will position Teva for turnaround in the short to medium term. We are already working on a detailed restructuring plan for Teva and will share it in mid-December.
"It remains our absolute priority to stabilise the company’s operating profit and cash flow in order to improve our financial situation, while being focused on short-term revenue and cash generation, and at the same time, ensure we deliver on our commitment to supply high-quality medicines to patients around the world."
The new structure will mean the commercial business no longer consists of two separate global groups for generics and specialty medicines. Instead, it will be integrated into one commercial organisation, operating through three regions – North America, Europe and Growth Markets.
Reports had emerged yesterday of concerns that the generics maker was planning to cut half its workforce in Israel. Today, Israeli newspaper Haaretz reported it is expected that the layoffs will include nearly half of Teva's 6,800 Israeli employees.
Israeli Prime Minister Benjamin Netanyahu said he had spoken with the group's chief executive and asked that the company keeps layoffs in Israel to a minimum.
Teva operates in a number of locations around the UK, with its main offices in West Yorkshire, Essex and Sussex. The firm claims to be the biggest supplier of medicines to the NHS.