Who's A Freier? Teva Freezes Israeli Job Cuts Amid Government Pressure

Faced with an outcry over plans to eliminate 800 jobs in Israel as part of a global cost-cutting campaign, Teva Pharmaceuticals has temporarily frozen plans to fire those workers while talks are held simultaneously with the government and a key labor union, according to reports. The drugmaker, which is one of the biggest employers in Israel, backed off amid outrage that the government provided roughly $3.4 billion in tax breaks between 2006 and 2011 in order to encourage capital investment, while not paying any corporate taxes. Teva employs about 8,000 people in Israel. “I’m not pleased with the tax benefits that the large companies received,” finance minister Yair Lapid told a television station, according to Ha'aretz. “Previous governments gave them benefits that were too large and may they should have linked that with the issue of employment as well.” As reported last week, Teva plans to cut 5,000 jobs globally as it prepares for patent expiration next year on its best-selling Copaxone treatment for multiple sclerosis. The move is part of a plan to accelerate a $2 billion cost-cutting campaign announced late last year (back story). Earlier this week, Teva director Chaim Hurvitz predicted the cutback would not be nearly as gruesome, because as many as 400 Israeli employees retire every year and if hiring is frozen, the job cuts could be accomplished without firings (see this). Nonetheless, the head of the opposition Labor Party, Shelly Yacimovich, suggested that T...
Source: Pharmalot - Category: Pharma Commentators Authors: Source Type: blogs