Teva to Lay Off Hundreds of Employees in Israel

Teva announced it will lay off 250 employees at its Teva Tech site in Ramat Hovav, which operates within TAPI, the company’s global active pharmaceutical ingredients division. Ynet reported that the layoffs will be carried out gradually over the next two years.

The move comes after Teva spent the past two years trying, unsuccessfully, to find a buyer for the TAPI division. The company said it is still examining the possibility of selling the division, depending on market opportunities. According to Teva, the reduction is part of a global effort aimed at strengthening TAPI’s competitiveness and adapting it to business changes.

At the Israeli site, production of advanced raw materials, including peptides, vitamins and oligo manufacturing technologies, will continue, while some production will be transferred to the company’s plants abroad, where production costs are lower. At the same time, the PlantTex unit, whose closure was announced in 2018, will stop operating at the end of 2027, and its products will be transferred to Teva Tech.

TAPI operates as a separate company within Teva, with independent management and strategy, partly in preparation for a possible future sale. The division is estimated to be worth about $1.5 billion. The move is being carried out in coordination with the workers’ committee and the Histadrut.

Teva said it will provide affected employees with personal support, career guidance, funding for professional training and enhanced severance terms. The company stressed that the changes are not expected to affect its commercial operations in Israel or the availability of medicines for patients.