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

    • 3 Tips to Attract and Retain Employees in the Gig Economy

      The gig economy has been around ever since workers began looking for supplemental income, but, it has recently evolved with the introduction of technology. Companies emerging like Uber, Lyft and GrubHub, are changing the gig economy landscape of the workforce. The gig economy has attracted millennials and Gen Zers because of the flexibility and autonomy to work from anywhere, at any time.

    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

    • (Industrial hemp photo courtesy of Purdue University)

      Hemp Processor Announces Expansion

      Indianapolis-based BDX Indiana has announced plans to bring more than 100 new jobs to central Indiana, with about a third of those going to a planned hemp extraction facility in Westfield. BDX extracts CBD oil from Indiana-grown hemp and is a sister company of Biodynamic Ventures, the largest hemp grower in Indiana. The city says the phase one build-out of the overall $50 million project is expected to begin this month with production to start in December. 

    • Butler Blue III is retiring next spring as the school's mascot. (photo courtesy Butler University)

      Butler Mascot Set to Retire

      One of the best-known ambassadors for Butler University is stepping down, all four legs of him, at the end of the current academic year. The university says their furry mascot, Butler Blue III, is ready to retire after nearly eight years of greeting visitors, students and staff. 

    • (photo courtesy of Indianapolis International Airport)

      Indy Airport Showcases New Retail Offerings

      Indianapolis International Airport is celebrating the opening of the first wave of new retail offerings. The new stores are part of the airport's multi-year Concessions Refresh initiative, which aims to bring a greater mix of nationally-known brands, such as FAO Schwarz and Vineyard Vines, with more local offerings, including Natalie's Candy Jar and Fountain Square Market. In all, nine new retail stores opened Tuesday morning. In an interview with Inside INdiana Business...

    • (WISH-TV Photo)

      Waterside Fight Continues Between Ambrose, City

      Ambrose Property Group has taken another step in its fight with the city of Indianapolis over the former GM Stamping Plant site in the city's downtown. The developer has given a notice of the legal action it intends to pursue against the city for what it calls "the city's baseless eminent domain threat and defamation." The back-and-forth between the two parties stems from Ambrose's announcement in late September that it planned to sell the property, which was being...

    • 3 Tips to Attract and Retain Employees in the Gig Economy

      The gig economy has been around ever since workers began looking for supplemental income, but, it has recently evolved with the introduction of technology. Companies emerging like Uber, Lyft and GrubHub, are changing the gig economy landscape of the workforce. The gig economy has attracted millennials and Gen Zers because of the flexibility and autonomy to work from anywhere, at any time.