Teva has already decided to move its U.S. headquarters, and now it’s planning to move its worldwide headquarters, too.
The company will relocate to Tel Aviv from Petah Tikvah, Israel in mid-2020, a spokeswoman confirmed by email. Teva has chosen a site in the city’s Ramat Hahayal district, and the new structure will house only Teva employees. Teva will be leasing the building.
The reasoning behind the move is no surprise, given the generics giant is in the midst of implementing a $3 billion cost-cutting drive. Putting Teva’s headquarters under one roof—instead of at sites scattered around Petah Tikva—will save the company money, the spokeswoman said.
“Combining into one site … will be an efficient and cost-effective solution, generating significant savings from a business and operations point of view,” she wrote, adding that it will also “fulfill our goal of working as One Teva.”
As part of CEO Kåre Schultz’s grand restructuring, unveiled this time last year to help the company out of immense debt, Teva also agreed this summer to an address change in the U.S. after shuttering pricey offices in New York and Washington, D.C. Lured by a $40 million tax break from the state of New Jersey, the company switched its home base to Parsippany from North Wales, Pennsylvania.
There, it has a construction project to complete. “It is an astronomical build-out process,” Harvey Rosenblatt, founder of the real estate developer that owns and manages Teva’s new building, toldNJ.com in July.
Meanwhile, as Globes pointed out, the Tel Aviv news is likely to go over well in Israel’s home country, where concerns have persisted—thanks in part to the hiring of Danish Schultz, as well as plenty of local layoffs—that Teva is losing its Isareli identity and could even relocate to a new country.