Teva rejects Israeli PM's request to keep Jerusalem plant open
Teva Pharmaceutical Industries has rejected Israeli Prime Minister Benjamin Netanyahu's request to keep the company's manufacturing plant in Jerusalem running.
The world's largest generics drugmaker said last week it aimed to cut debt by reducing its workforce by more than a quarter, or 14,000 jobs, including 1,700 in Israel, where it will close its manufacturing site in Jerusalem.
Teva has said about 320 workers would lose their jobs in Jerusalem in 2018 and 500 would be laid off in 2019 when the plant shuts.
"Unfortunately, Teva is unable to consent to the request of the prime minister and ministers and avoid the closure of the plant in Jerusalem and the company will continue in the phased closure of the plant by the end of 2019," Chief Executive Kare Schultz said, following a meeting with Netanyahu and the ministers of finance, economy and labour.
Teva's business situation requires immediate and significant action to secure its future, he said.
"Without taking drastic steps in the coming weeks and months, the company will be increasingly vulnerable to potential takeover," Schultz said.
