Lilly Freezing Base Pay For Most Workers
Indianapolis-based Eli Lilly and Co. (NYSE: LLY) tells Inside INdiana Business a decision to freeze salaries for many employees will help the company deal with "the most significant challenges" in its history. Base salary increases for most workers in 2014 are being suspended. Lilly expects to lose about 20 percent of global revenues because of patent expirations. July 17, 2013
Statement From Eli Lilly and Co.
This is a difficult, but necessary decision. While we remain confident in our future, we continue to face the most significant challenges in our history. We expect to lose about 20 percent of our global revenue in 2014 because of the expiration of the Cymbalta and Evista patents in the U.S. While we've taken many actions to reduce costs and become a leaner organization, we must do more. We estimate these actions will enable us to save about $400 million through 2016.
Source: Eli Lilly and Co.