Teva to fire 7,000 employees due to massive loss
Teva Pharmaceutical sees secondary drop in share prices amid reported lossesAfter yesterday's (Thursday) announcement that Teva Pharmaceutical would take on a number of recovery measures in response to their $6 billion loss, the Israeli-based company suffered another significant loss in share value today.
After Teva’s shares lost a third of their value, prices fell another 11.6% today (Friday). The company has also suffered a series of downgrades from banks and investment firms.
The drop in value of Teva’s shares comes amid disappointing second-quarter results reported by the company pointing to harsh competition in the US drug market and price erosion that resulted in a decline in the shares of several pharmaceutical companies, with Teva at the forefront.
Yesterday (Thursday), Teva reported $6 billion in losses that sent its stocks plunging 24%, a secondary loss of $8 billion in value. In addition, Teva announced a series of recovery measures the company will take, including the layoff of 7,000 employees from its plants around the world along with the termination of work in 45 countries. Furthermore, by the end of 2018 the company plans to close 15 plants. As a result of the financial turmoil, leading investment banks in the US published negative reviews including ratings agency Moody's which lowered Teva’s credit rating.
Teva’s Interim CEO Dr. Yitzhak Peterburg commented on the company’s financial troubles in an interview with Globes, stating: "I think the company is trying to do the best thing for its shareholders, and it will continue to do that. I do not manage the shares but the company.”
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