Teva announces 250 layoffs at Israel plant after failed sale

ISRAEL—Teva Pharmaceutical Industries is set to eliminate 250 positions in its active pharmaceutical ingredients (API) division over the next two years as the company continues to streamline operations while seeking a buyer for the business.

The planned job cuts will primarily affect employees at the company’s facility in Neot Hovav, an industrial zone near Beer Sheva in southern Israel.

 The move comes as Teva advances plans to divest its API unit, Teva Active Pharmaceutical Ingredients (TAPI), a process first announced in January 2024.

According to reports by Israeli business publication Globes, TAPI currently employs about 4,100 people worldwide, down from roughly 4,300 employees when Teva first disclosed its intention to sell the division.

Restructuring ahead of potential sale

Teva said the workforce reduction forms part of a broader effort to strengthen the division’s long-term operational stability as it prepares for the next phase of its strategic transformation.

“The move is being carried out in full coordination and cooperation with employee representatives and the Histadrut, with a long-term view of strengthening the operational stability of the division in Israel,” TAPI said in a statement quoted by Globes.

The Histadrut, formally known as the General Federation of Labor in Israel, is the country’s largest labor organization and plays a central role in negotiations involving major employers.

The restructuring comes at a time when geopolitical tensions in the Middle East continue to create uncertainty for pharmaceutical manufacturers.

Disruptions to regional supply chains, rising energy prices, and concerns surrounding shipping routes such as the Strait of Hormuz have increased pressure on companies that depend on the global movement of pharmaceutical ingredients.

These challenges could complicate ongoing efforts to attract a buyer for TAPI, one of the world’s largest producers of active pharmaceutical ingredients.

Leadership transition at TAPI

The divestiture process will also unfold alongside a significant leadership change.

Dr. R. Ananthanarayanan, who joined Teva in 2023 to lead the API business, will retire as Chief Executive Officer of TAPI and leave the company on July 3, 2026.

The workforce reductions remain separate from Teva’s wider corporate restructuring programme announced last year.

Under that initiative, the company aims to generate approximately US$700 million in savings by 2027 through operational efficiencies and workforce optimisation.

As part of that effort, Teva disclosed plans to reduce its global workforce by around 8%, from approximately 30,000 employees.

Focus Shifts Toward Innovative Medicines

While TAPI’s future remains under review, Teva continues to accelerate its transition from a traditional generics manufacturer to an innovation-driven pharmaceutical company.

In the first quarter of 2026, sales of Teva’s key branded medicines, including Austedo for tardive dyskinesia, Ajovy for migraine prevention, and Uzedy for schizophrenia, rose 41% year on year in local currency, highlighting the growing importance of the company’s innovative portfolio.

The company is also awaiting regulatory decisions on TEV-749, its once-monthly extended-release olanzapine injectable for schizophrenia, following the U.S. Food and Drug Administration’s acceptance of its New Drug Application earlier this year.

Recent Acquisition Strengthens Neuroscience Pipeline

In a further sign of its strategic shift, Teva recently completed the acquisition of Emalex Biosciences for US$700 million, with another US$200 million in milestone payments, potentially bringing the total deal to US$900 million.

The transaction adds ecopipam, a late-stage treatment candidate for paediatric Tourette syndrome, to Teva’s growing neuroscience portfolio.

The company announced the completion of the acquisition on June 10, 2026, and expects the therapy to move toward a U.S. regulatory submission later this year.

The acquisition reflects Teva’s ongoing “Pivot to Growth” strategy, which prioritises investment in innovative medicines, biosimilars, and specialised therapies while reducing reliance on legacy businesses and mature generic products.