Teva Pharmaceutical Industries Ltd. CEO Kare Schultz rejected Israeli Prime Minister Benjamin Netanyahu's request to keep the company's manufacturing plant in Jerusalem open, Bloomberg News reported, citing a company statement.
Schultz said the measures are "painful, but absolutely vital."
The company plans on closing the manufacturing site by the end of 2019. The plant employs roughly 800 people, according to Bloomberg.
The generic drugmaker recently announced plans to slash a quarter of its workforce and suspend its dividend to cut its cost base by $3 billion in two years.
"Unfortunately, Teva is unable to consent to the request of the prime minister and ministers and avoid the closure of the plant in Jerusalem and the company will continue in the phased closure of the plant by the end of 2019," Reuters reported, citing Schultz.
Without "drastic" measures, Teva will be "increasingly vulnerable to potential takeover," Schultz said after a meeting with Netanyahu and the ministers of finance, economy and labor.