Upcoming Webinars Archived Webinars Training Vitals Host A Webinar About Get Updates Contact

3,500 Job Cuts at Eli Lilly Signal Change in Focus



The move will free up about $500 million which the company plans to use to fund clinical development of the drugs in its pipeline.

Share this!

September 12, 2017 | by Sarah Hand, M.Sc.

Pharmaceutical company Eli Lilly has announced it will be implementing around 3,500 layoffs globally, in an effort to “streamline operations.” The move will free up about $500 million which the company plans to use to fund clinical development of the drugs in its pipeline.

“We have an abundance of opportunities—eight medicines launched in the past four years and the potential for two more by the end of next year,” said David A. Ricks, Lilly's chairman and chief executive officer. “To fully realize these opportunities and invest in the next generation of new medicines, we are taking action to streamline our organization and reduce our fixed costs around the world.”

While site closures will factor into the planned layoffs, Lilly says that a US voluntary early retirement program will make up the bulk of the savings. As of September 7, the company has already started offering the program to select Lilly employees in the US, with the incentive for early retirement being “enhanced retirement benefits.”

According to Lilly, the majority of the voluntary early retirement program will be complete by the end of 2017. This will help the company gain access to some of the savings as early as 2018.

"The actions we are announcing today will result in a leaner, more nimble global organization and will accelerate progress towards our long-term goals of growing revenue, expanding operating margins and sustaining the flow of life-changing medicines from our pipeline," said Ricks.

As part of the restructuring efforts, Lilly will move its Larchwood, Iowa animal health manufacturing plant to facility in Fort Dodge. Two R&D sites – one in New Jersey and another in Shanghai – will also close.

The layoffs and site closures are expected to have an effect on Lilly’s 2017 earnings. A $1.2 billion pre-tax charge will cover expenses related to severance packages and the early retirement program.

Keywords: Pharmaceutical Industry, Eli Lilly, Drug Development


Share this with your colleagues!

Researchers Identify Role of ApoE4 Gene as Possible Drug Target in Alzheimer’s Disease

September 21, 2017 - A team of neurology researchers at Washington University School of Medicine in St. Louis have found that in the presence of the ApoE4 protein, another protein known as tau forms tangles in the brain which contributes to neuronal damage characteristic of Alzheimer’s disease.

Featured In: Life Science News

New Guidelines Address CAR-T Immunotherapy Toxicities to Prevent Patient Deaths

September 20, 2017 - Clinicians at The University of Texas MD Anderson Cancer Center have published new guidelines in the journal, Nature Reviews Clinical Oncology, which could help in the management of these toxicities.

Featured In: Biotech News, Drug Safety News

Microneedle Skin Patch Could Treat Common Metabolic Disorders

September 19, 2017 - Researchers at Columbia University Medical Center (CUMC) and the University of North Carolina have developed a microneedle skin patch impregnated with a drug capable of converting white fat into calorie-burning brown fat.

Featured In: Medical Device News


Five Reasons Why Toronto is Emerging as a Major Life Sciences Hub


Development and Manufacture of Highly Potent API Drug Products Throughout the Clinical Phases

Innovation through Integration – Providing Next Generation Biomedical Devices and Interconnects

Clinical Payments Case Studies: Improving Efficiency, Cash Management, and Compliance

Why Phase 3 Trials Fail: Oncology Case Studies and Lessons Learned

Copyright © 2016-2017 Honeycomb Worldwide Inc.