Lilly Announces Global Restructuring

Posted: Updated:
Lilly says it expects the majority of eliminated positions to come through a voluntary retirement program. Lilly says it expects the majority of eliminated positions to come through a voluntary retirement program.

Editor's Note: Read the story titled "New Indy-to-Paris Flight Big For Business" by clicking here.

INDIANAPOLIS - Indianapolis-based Eli Lilly and Co. (NYSE: LLY) has announced a global restructuring, including work force reductions expected to impact about 3,500 workers. The company expects the moves to lead to about $500 million in annual savings beginning next year. The pharmaceutical giant says the cuts will include site closures in Iowa, New Jersey and China. Chief Executive Officer David Ricks says the restructuring will allow the company to reduce costs and "invest in the next generation of new medicines."

Lilly says it expects the majority of eliminated positions to come through a voluntary retirement program in the U.S., with those participating receiving enhanced retirement benefits. The company plans for that program to be largely completed by the end of the year.

As part of the restructuring, the company plans to move production from an animal health manufacturing facility in Larchwood, Iowa to an existing plant in Fort Dodge, Iowa. Lilly also says it will close a research and development office in Bridgewater, New Jersey and the Lilly China Research and Development Center in Shanghai, China.

Moving forward, the company says it will continue to evaluate the need to further reduce costs and improve efficiencies. It says those efforts could include additional work force adjustments.

"The commitment and perseverance of our people, who never give up on our mission of tackling hard-to-treat diseases, make up our legacy of more than 140 years," says Ricks. "We will implement changes with fairness and the utmost respect for our Lilly colleagues, while we remain a vibrant, thriving competitor."

Lilly expects to incur a charge of $1.2 billion through the effort, resulting in a reduced earnings per share guidance in 2017.

  • Perspectives

    • The Power of Partnerships

      You can't go it alone in tech. All technology companies, regardless of their segment, live in an ecosystem comprised of organisms of varying complexity. More mature companies in established categories can function at the top of the food chain, consuming smaller companies through acquisition, but startups are seldom if ever in a position to gain dominance through acquisition. It’s vital for the success of a startup to be able to play well with others...

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • Liberty Mutual Plans 400 New Carmel Jobs

      Boston-based Liberty Mutual Group Inc. is planning to add up to 400 Carmel jobs as part of a $14 million expansion plan. The insurance company has a global presence and currently employs 1,430 in central Indiana. The Indiana Economic Development Corp. says the new jobs, expected to be created by 2021, will pay more than the state and Hamilton County average wages. Plans call for Liberty Mutual to lease...

    • Indiana Included Among 'Least Tax-Friendly States'

      A personal finance magazine has ranked Indiana among the 10 least tax-friendly states in the country for retirees. The ranking is part of Kiplinger’s Personal Finance's 2017 Retiree Tax Map, which compares all 50 states on senior tax breaks, as well as taxes on income, property, everyday purchases and estates.

    • Schools Recognized Among Best For Military Students

      Two Indiana schools are ranked among the best colleges for veteran, active-duty and military dependent students. The Military Times Best: Colleges 2018 rankings are determined by a survey that assesses the veteran and military student services and rates of academic achievement of more than 600 colleges throughout the country.

    • Vote on North River Property Deal Delayed

      The Fort Wayne City Council has delayed a vote on whether to purchase a 29-acre property near the city's downtown. Our partners at WPTA-TV report some members of the council are concerned about the more than $4 million deal, as the city will not know the results of an environmental study until after the transaction is complete. The city has called the property, which served as the site of a former OmniSource scrap yard, as an "important gateway to downtown."

    • Purdue Startup Scores Federal Funding

      The National Science Foundation has awarded a $750,000 grant to a Purdue University-based tech startup. The university says the funding will help Perceive Inc., which is located at the Anvil coworking space on the West Lafayette campus, further develop its automated customer service coaching software.