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BRIEF-Eli Lilly to cuts jobs, focus on developing new medicines
September 7, 2017 / 1:34 PM / 3 months ago

BRIEF-Eli Lilly to cuts jobs, focus on developing new medicines

Sept 7 (Reuters) - Eli Lilly And Co

* Lilly takes steps to streamline business, invest in new medicines and drive growth

* Eli Lilly - ‍global workforce reductions, including from U.S. voluntary early retirement program, are expected to impact approximately 3,500 positions​

* Eli Lilly and Co - ‍expects majority of positions eliminated to come from a U.S. voluntary early retirement program​

* Eli Lilly and Co - ‍expects annualized savings of approximately $500 million that will begin to be realized in 2018​

* Eli Lilly and Co - ‍Company’s reported earnings per share guidance in 2017 will be reduced by amount of charges​

* Eli Lilly and Co - ‍expects to incur charges of approximately $1.2 billion pre-tax or $0.80 per share after-tax​

* Eli Lilly and Co - ‍there will be no change to company’s non-GAAP earnings per share guidance as a result of initiatives​

* Eli Lilly and Co - ‍remaining positions eliminated will come from other anticipated workforce reductions, including select site closures​

* Eli Lilly and Co - ‍charges will be reflected as asset impairment, restructuring and other special charges in third and fourth quarters of 2017​

* Eli Lilly - “‍Annualized workforce savings of approximately $500 million will be about equally split to improve company’s cost structure and reinvest in business​”

* Eli Lilly and Co - ‍voluntary early retirement program announced to U.S. employees on Sept 7, 2017, will be largely completed by December 31, 2017​

* Eli Lilly - ‍confirmed Thursday’s savings would improve upon co’s previous commitment, now expects to achieve opex-to-revenue ratio of 49 percent or less in 2018​

* Eli Lilly - ‍will move production from its animal health manufacturing facility in Larchwood, Iowa, to an existing plant in Fort Dodge, Iowa​

* Eli Lilly and Co - ‍a research and development office in Bridgewater and Lilly China Research and Development Center in Shanghai, will close​

* Eli Lilly and Co - ‍will also further consolidate some work to its existing shared service centers​

* Eli Lilly - ‍in addition to U.S. voluntary early retirement program, co will determine where it needs to further reduce costs and “improve efficiencies”​ Source text for Eikon: Further company coverage:

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