Photo: The Canadian Press

Teva Pharmaceutical Industries Ltd., the world's largest generic drugmaker, on Thursday said it would lay off 14,000 workers as part of a global restructuring meant to salvage its ailing business.

The company said the layoffs represent over 25 per cent of its global workforce. The job cuts are to occur over the next two years, with most expected in 2018. The restructuring is expected to cut costs by $3 billion by the end of 2019.

In a letter to employees, Chief Executive Kare Schultz said the restructuring is "crucial to restoring our financial security and stabilizing our business."

"We have no time to waste," he said. "We are flattening our organization both top down and sideways, with fewer layers of management and increased accountability. This will ensure better integration, improve productivity and efficiencies, and reduce our cost base."

Teva's bottom line has been hit by the expiration of patents on Copaxone, its flagship drug for multiple sclerosis; pricing pressure on its core generics business; and a $35 billion debt load taken on in its acquisition of the generics business of Allergan. It also has suffered from turnover and instability in its senior management ranks.

Teva's stock has skidded nearly 60 per cent this year.