Eli Lilly and Co (LLY) Layoffs: Drugmaker to Cut 3,500 Jobs

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Eli Lilly and Co (NYSE:LLY) is planning to lay off employees in an effort to save money.

Eli Lilly and Co (LLY) Layoffs: Drugmaker to Cut 3,500 Jobs

Eli Lilly and Co says that the layoffs will mostly come from its voluntary retirement offer made today. This offer will be available to select U.S. employees until Dec. 31, 2017 and will include enhanced retirement benefits.

Eli Lilly and Co notes that the layoffs will include it eliminating 3,500 positions. The company says that this will result in annual savings of $500 million. It is expects these savings to start being realized in 2018.

Eli Lilly and Co also points out that it will be closing down several sites as part of its efforts to reduce costs. This includes its facilities in Larchwood, Iowa, Bridgewater, N.J., and the Lilly China Research and Development Center in Shanghai.

Eli Lilly and Co is expecting the layoffs and facility closings to result in $1.2 billion pre-tax in charges. It will be including these in its earnings reports for the third and fourth quarter of the year under “asset impairment, restructuring and other special charges.”

“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,” David Ricks, Chairman and and CEO of Eli Lilly and Co said in a statement.

LLY stock was up 1% as of Noon Thursday and is up 11% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/09/eli-lilly-and-co-layoffs-lly/.

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