Teva Pharmaceutical Industries Ltd.’s new Chief ExecutiveOfficer Kare Schultz proved that when it comes to saving thestruggling drugmaker, he’s ready to pull outall the stops.
Just six weeks into the job, he announced plans to slash 25percent of the Israeli company’s 56,000-strong workforce, suspenddividends and forgo employee bonuses. The plans, which envisioncutting costs by $3 billion in two years, surpassed even the mostaggressive forecasts from analysts and sent shares surging the moston record in Tel Aviv.
"You can expect a simpler, leaner and more agile organizationorganized in a much more straightforward way," Schultz said on aconference call as he outlined how the world’s biggest generic drugmaker will reduce a debt burdenthat’s twice its market value. “In two years from now, it’s goingto look good. If we do well, then in five years it’s going to lookgreat.”
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