Teva’s (TEVA) shares have been on a roller coaster ride over the past few days. The stock bounced over 10% Thursday after the company announced it would lay off about 25% of its workforce and suspend its dividend:

Teva Pharmaceutical Industries Ltd.’s new Chief Executive Officer Kare Schultz proved that when it comes to saving the struggling drugmaker, he’s ready to pull out all the stops.

Just six weeks into the job, he announced plans to slash 25 percent of the Israeli company’s 56,000-strong workforce, suspend dividends and forgo employee bonuses. The plans, which envision cutting costs by $3 billion in two years, surpassed even the most aggressive forecasts from analysts and sent shares surging the most on record in Tel Aviv.

Teva will now be a leaner organization; however, not much is really new. We have known for months the company needed to cut costs due to the approval of Mylan’s (MYL) generic version of multiple sclerosis drug Copaxone. The cuts to employee bonuses and the suspension of the dividend are the right things to do. They will also increase cash flow. However, I believe the excitement is premature for the following reasons:

Teva Will Likely Have To Restructure $5B Debt Due Next Year

Teva still has $35 billion in debt that needs to be repaid. Its debt already exceeds 5x run-rate EBITDA. Fitch recently downgraded the company to junk status. Once generic Copaxone kicks in I expect the company’s credit metrics to deteriorate further. An even more pressing matter is that $5 billion of the company’s debt load is due next year, and $19 billion over the next three years.

Teva does not have the cash or the cash flow to make $5 billion in principal payments due in 2018. It currently has $680 million in cash on hand. Through the first nine months of 2017 it generated $1.7 billion in free cash flow, which equates to about $2.3 billion annually. However, the arrival of generic Copaxone will likely crimp its EBITDA and cash flow. Copaxone represents 45% – 50% of Teva’s total EBITDA.