Not that unexpected, but the number is still staggering - Eli Lilly will be laying off 3,500 people in the following months. So far, we know for sure that Bridgewater will be impacted, as the research facility is closing. Some will also be able to take early retirements, which is something, I guess. Any news as the situation develops will be highly appreciated. Good luck to all, these will not be easy months to go through for us, that's for sure.
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We knew about this. It'll be ugly - it's all over the media right now...
You know it is a different world when big pharmaceutical giants began to lay off workers in recent years. Now it is Eli Lilly and Co. (NYSE: LLY) joining in on the layoff brigade for a “streamlining and focusing” effort as part of a cost structure initiative.
Eli Lilly is cutting 3,500 positions from its global workforce. The company did note that this includes a voluntary early retirement program in the United States. This represents about 8% of Eli Lilly’s workforce.
As far as how the company will streamline operations and more efficiently focus resources on developing new medicines, the company said that it expects annualized savings of roughly $500 million starting in 2018. Eli Lilly also said that it is particularly looking to cut its fixed costs.
To realize those savings the company will have to take a $1.2 billion pretax charge in the third and fourth quarter of 2017. Those charges will be reflected as asset impairment and restructuring charges, as well as other special charges. The cuts are said to not create any major changes to Eli Lilly’s operating earnings per share (EPS), and the company is now targeting a ratio of operating expenses to revenues of 49%.
SOURCE: http://247wallst.com/healthcare-business/2017/09/07/eli-lilly-hopes-to-benefit-from-joining-the-layoff-brigade-3500-pink-slips/