Sector News

Eli Lilly counts up 2,300 early retirements in $500M cost-cutting drive

November 9, 2017
Life sciences

Eli Lilly has a status update for its massive round of job cuts aimed at saving $500 million per year: Around 2,300 employees have taken voluntary early retirements, and Lilly is “on track to achieve” the 3,500 cuts it laid out in September.

Beyond the 2,300 retirements, “the company will determine where it needs to further reduce costs and improve efficiencies,” spokesperson Mark Taylor said via email.

“Remaining positions will come from other anticipated workforce reductions, including select site closures … as well as consolidation of some work to existing shared service centers,” he continued.

The company had previously said it would close research sites in New Jersey and Shanghai, and move animal health manufacturing from a site in Larchwood, Iowa, to an existing site in Fort Dodge, Iowa.

The moves are new Lilly CEO David Ricks’ first major restructuring at a time when Lilly faces competitive pressure on its important diabetes business and looks to a wave of new therapies for growth. Psoriasis entrant Taltz has picked up quickly this year, and the company has high hopes for new breast cancer medication Verzenio, which won approval in late September.

Before the job cut announcement, Ricks shook up the drugmaker’s management team, bringing in former Novartis executive Christi Shaw and naming Enrique Conterno to head of Lilly USA and diabetes chief.

The company’s former U.S. head, Alex Azar, left in the overhaul but is now poised to be named secretary of the U.S. Department of Health and Human Services, according to multiple media reports.

Lilly’s move to reduce its headcount by 3,500 is the company’s largest cut since 2009, when it let go of 5,500 employees. Earlier this year, the drugmaker eliminated 485 jobs because of a trial failure for Alzheimer’s candidate solanezumab. The company had added staff in anticipation of an approval and launch.

Other top drugmakers to chop a significant number of jobs this year include Merck & Co., which recently overhauled its sales team with a round of 1,800 cuts and added a new team of 960 staffers to market chronic care medications, and struggling Teva, which downsized with a round of 7,000 eliminations.

Lilly had about 42,000 employees around the world at the end of last year, according to its annual SEC filing.

By Eric Sagonowsky

Source: Fierce Pharma

comments closed

Related News

June 24, 2022

Echosens and Novo Nordisk announce partnership to increase awareness and advance early diagnosis of NASH

Life sciences

Echosens, a high-technology company offering liver diagnostic solutions, and Novo Nordisk A/S, a leading global healthcare company, announced a partnership to advance early diagnosis of non-alcoholic steatohepatitis (NASH) and increase awareness of the disease among patients, healthcare providers and other stakeholders.

June 24, 2022

argenx receives positive CHMP opinion for Efgartigimod for the treatment of adult patients with Generalized Myasthenia Gravis in Europe

Life sciences

Positive opinion based on Phase 3 ADAPT trial showing efgartigimod provided clinically meaningful improvements in strength and quality of life measures. If approved, efgartigimod will be the first neonatal Fc receptor (FcRn) blocker for the treatment of adults in Europe living with rare neuromuscular disease generalized myasthenia gravis (gMG).

June 24, 2022

Galapagos finally takes M&A plunge, spending $251M for 2 biotechs in CAR-T push

Life sciences

Galapagos CEO Paul Stoffels, M.D., has finally taken the plunge on M&A. The newly minted chief executive has signed not one but two deals in an attempt to right the ship, bringing two small biotechs aboard for a combined 239 million euros ($251.4 million).