With its executive suite in turmoil, its flagship drug under attack and its books burdened by debt following years of drought in its R&D arm, Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) is reportedly preparing to unleash a major reorganization that will cost thousands of jobs.

Written by John Carroll (ENDpts.com)

The Israeli newspaper Calcalist reported that the biopharma hybrid, which sells generics as well as branded drugs, is planning to cut up to 6,000 staffers — 11% of its total — after Passover. In a statement, though, Teva fired back that it won’t pink slip thousands, preferring instead to ending certain activities, consolidating operations and freezing any new hires with the company saying:

“The efficiency program is an integral part of Teva’s business reality. The program includes, among other things, ending unprofitable activities and consolidating functions, in addition to freezing recruitment and natural employee turnover.”

The latest signs of turmoil come just weeks after CEO Erez Vigodman left the company soon after a federal court tossed several patents protecting Teva’s 40 mg dose of Copaxone, its multiple sclerosis mainstay that brought in close to 20% of the company’s revenue last year. Vigodman went out the same door Jeremy Levin was thrown through in late 2013 after he tried, and failed, to push through a restructuring. Activist investor Benny Landa...wants to see the company split up into two, with one side taking the generics business and another group spinning off the brand division.

The Israeli company has been feeling the heat after a $40.5 billion generics acquisition deal with Allergan plc (NYSE:AGN) last year left a heavy debt to work out as generic prices have dropped. Teva started the year by lowering its 2017 guidance by $1 billion, which did nothing to endear the company with analysts and investors.

Teva is running out of options. Said Kite CEO Arie Belldegrun after he resigned from the board:

“Every drug company has to change constantly. Teva was very comfortable with Copaxone, but it should have already prepared 8-10 years ago for its subsequent life, and no such proper preparations were made. You can’t accuse the company; it grew so fast. Now it is investing in its future development, but a temporary hole has been left, and must be survived. Teva’s future will come from Prof. Michael Hayden’s department (the innovative department, G.W.). Everyone is sorry that (former generics division head) Siggi (Sigurdur) Olafsson left, but Siggi wasn’t working on Teva’s future.”