Israeli pharmaceutical giant Teva signed an agreement with its employees, according to which those who are laid off will receive a significant benefit package and undergo a placement program. This means that a majority of the Jerusalem factory’s employees will continue to work there until the end of 2019.

Outside of the Teva Pharmaceutical Industries' Jerusalem building

Outside of the Teva Pharmaceutical Industries’ Jerusalem building Photo Credit: Yonatan Sindel/Flash90

Teva Pharmaceutical Industries’ announcement concerning its dramatic budget cut program led hundreds of employees to take to the streets. Today (Tuesday), the Israeli pharmaceutical giant announced that it signed an agreement with the Histadrut and the workers’ union, according to which a majority of the Jerusalem factory employees will continue working there until the end of 2019 and will undergo a training program that will enable a smooth transition into the workforce.

According to Teva, there was a joint effort between all parties involved with the agreement to significantly reduce the first wave of layoffs set for the first financial quarter of 2018, which will be postponed for a majority of the employees until December 2019.

The employees’ coverage plan will provide them with benefits including financial packages dependent on the employee’s seniority and prospects for integration into the workforce. Furthermore, those who are laid off will receive guidance with counseling, workshops and training programs.

As reported in August by JOL, Teva Pharmaceutical Industries announced that it would be firing 7,000 of its employees worldwide, including in Israel, due to a reported $6 billion loss.