- Teva Pharmaceutical Industries (NYSE:TEVA) announces its restructuring plan. Key points:
- Workforce to be reduced 25% (14K positions globally).
- Dividend suspended on ordinary shares and ADSs. Dividends on mandatory convertible preferred shares will be evaluated on a quarterly basis.
- No annual bonuses will be paid this year.
- Organizational structure to be simplified via reducing layers of management, streamlining processes and divesting/closing certain R&D facilities.
- Total cost base to be reduced $3B (from a base of $16.1B this year) by the end of 2019. More than half should be achieved by the end of next year.
- Restructuring charge of $700M to be recorded in 2018.
- 2018 guidance will be provided in February with the release of 2017 results. Color on longer-term strategic direction will come later in 2018.
- Shares are up 3% premarket on modest volume.
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Update: In the conference call, management stated that it had no plans to issue additional equity.