Teva to lay off 61 employees as New Jersey manufacturing plant closes
The closure comes as Teva continues to restructure its business under its Pivot to Growth strategy, launched after Richard Francis became chief executive in 2023.
USA—Teva Pharmaceuticals will close its manufacturing facility in Fairfield, New Jersey, by the end of January 2027, laying off 61 employees by February 1 as part of efforts to reduce operating costs and optimise its global manufacturing network.
According to a Worker Adjustment and Retraining Notification (WARN) filing with New Jersey authorities, the affected employees have already been informed of the planned closure.
A Teva spokesperson confirmed the decision, citing an ongoing review of the company’s global operations.
Underutilised facility faces declining demand
Teva said the Fairfield plant remains underutilised despite efforts to increase production, making it expensive to operate.
Declining demand and continued price erosion have also weakened the facility’s economic viability.
Closing the site will allow the company to redirect resources towards higher-priority investments.
However, Teva emphasised that it would maintain its broader US operations, including commercial activities, research and development, manufacturing and distribution in New Jersey and other locations.
The closure comes as Teva continues to restructure its business under its Pivot to Growth strategy, launched after Richard Francis became chief executive in 2023.
The strategy prioritises innovative medicines while maintaining the company’s presence in generics and biosimilars.
Teva has reported improved financial performance in recent quarters as it expands its innovative medicines portfolio.
Cost savings remain central to growth strategy
Despite the turnaround, Teva still faces pressure to improve efficiency and control costs.
In 2025, the company outlined plans to save approximately US$700 million by 2027 as it entered the next acceleration phase of its strategy.
The programme included workforce reductions targeting about 8% of its then-30,000 employees.
Teva also identified artificial intelligence, operational modernisation and procurement optimisation as measures to improve productivity and reduce expenditure.
In June 2026, reports indicated that Teva planned to eliminate 250 positions in its active pharmaceutical ingredients (API) business, which the company has sought to divest since at least January 2024.
When Teva announced its broader workforce reduction target in 2025, it clarified that the target excluded the API business and its former Japanese generics joint venture with Takeda, which the partners sold in late 2024.
The Fairfield closure adds to restructuring in generic drug manufacturing, where declining prices and rising operating costs can make some production sites less competitive.
Manufacturers are increasingly reviewing facility utilisation, production capacity and investment priorities as they seek to protect margins while funding growth in higher-value medicines.
Generic drug manufacturers cut regional jobs
Teva’s announcement follows another round of pharmaceutical manufacturing job cuts in the northeastern United States.
In early October 2026, InvaGen Pharmaceuticals, a subsidiary of Cipla, disclosed plans to eliminate more than 200 positions across two facilities in Suffolk County, New York.
Both developments highlight the cost pressures facing generic medicine manufacturers, particularly as companies reassess production networks and align capacity with demand.
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