Lilly’s Work Force Reduction Plans Remain ‘on Track’

(Image courtesy of Eli Lilly and Co.)

Indianapolis-based Eli Lilly and Co. (NYSE: LLY) says approximately 2,300 U.S. employees have taken voluntary early retirement. The buyouts relate to the company’s previously-announced global reduction plans, which Lilly says are "on track" to meet its 3,500-position target. Lilly is looking to save some $500 million in 2018 through the streamlining process.

Lilly had initially expected 2,000 U.S. employees to participate in the voluntary early retirement program. The company first announced the global restructuring in September, saying site in Iowa, New Jersey and China will be closed. Chief Executive Officer Dave Ricks said at the time of the announcement the process will reduce costs and help make way for "the next generation of new medicines." He added "we will implement changes with fairness and the utmost respect for our Lilly colleagues, while we remain a vibrant, thriving competitor."

Just over a month ago, the company detailed additional executive personnel moves, which include a new chief financial officer and new president for Lilly Research Labs.