Teva Pharmaceuticals to cut 25% of its global workforce

Israel-based Teva Pharmaceuticals, the largest generic drugmaker in the world, will be laying off 14,000 employees, a quarter of its workforce worldwide, including “significant” cuts to its 7,000 U.S. workers.

According to USA Today, Teva didn’t specify the exact number of U.S. job cuts, but confirmed several of its U.S. sites will be closed, including locations in Cambridge, Massachusetts; Washington, D.C.; Horsham, Pennsylvania; and New York City. The end goal is consolidate its seven U.S. sites into one central location which has yet to be chosen.

The Cambridge location had already been closed. The rest are expected to shut down over the next 12 to 24 months, according to a company spokesperson. Employees who will be laid off should be notified within the next 90 days.

In addition to the layoffs, Teva’s restructuring plan will include suspending its dividend payouts to shareholders, closing other research and development facilities and not paying out bonuses for 2017. The plan is projected to save the company $3 billion by the end of 2019.

“I am aware that we will be parting with people who have dedicated years and contributed a great deal to this company, and I deeply appreciate their commitment,” Teva president and CEO Kare Schultz said in an email to employees. “We are also aware that these changes impact not only our workforce, but vendors, suppliers and communities where we have played a key role for years. However, there is no alternative to these drastic steps in the current situation.”

Teva stock has fallen nearly 60 percent this year. The company has $35 billion in debt thanks in large part to its 2016 purchase of Allergan’s generics business. The announcement came a few days after Teva said it was dropping its patent lawsuit against Mylan Pharmaceuticals’ generic version of Teva’s multiple sclerosis treatment Copaxone.