Teva fails to sell TAPI division, plans to cut 250 jobs in Israel

Teva’s raw materials division, TAPI, which was supposed to be sold but whose sale did not materialize, announced “adjustments to its operations in order to support a long-term growth strategy.” The division, because it had been put up for sale, is currently operating as an independent company separate from Teva, with its own management and strategy. The process will also include a reduction in staff.

According to the company’s announcement, about 250 positions across TAPI in Israel are expected to be phased out over the next two years. It said that “the move is being carried out in full coordination and cooperation with the employees’ representatives and the Histadrut, מתוך a long-term view of strengthening the division’s operational stability in Israel.” The division currently employs about 650 people in Israel, out of about 4,100 employees worldwide.

According to the announcement, the changes will focus on “making necessary adjustments to changing business circumstances, strengthening competitiveness, increasing business focus and creating a solid foundation for the company’s future.” The process will be implemented gradually over the next two years, while Teva continues to examine the possibility of selling TAPI, “in accordance with market opportunities.”

The move will mainly affect Teva Tech’s site in Neot Hovav, which produces active ingredients for the pharmaceutical industry. The site will focus on growth areas such as peptide production, expanding activity in vitamins and more.

Plantex, another TAPI unit in Israel, whose site closure was announced back in 2018 as part of Teva’s reorganization plan, will cease operations at the end of 2027, and its products will be transferred to Teva Tech.

The announcement also stated, as noted, that the process of laying off 250 employees over the next two years is being carried out in full coordination and cooperation with the employees’ representatives and the Histadrut. Teva says it is committed to helping employees with personal support, career guidance, funding for training, and enhanced severance and grant terms.

Teva announced about three years ago that it intended to sell TAPI and expected to complete the move in 2025. The market estimated that Teva could receive more than $2 billion for the division. However, such a deal did not materialize, and last November, with the publication of the third-quarter 2025 results, Teva updated that talks with a potential buyer had been halted, and that the company would begin a new sale process, with the strategic intention of spinning off the operation, meaning it would no longer be part of Teva.