Eli Lilly to slash 5,500 jobs; aims $1 bn cost saving

Pharma firm Eli Lilly and Company today said it would slash around 5,500 jobs globally and reorganise its business into five units to reduce costs by $1 billion.

The company will reorganise the company into around five global business units -- oncology, diabetes, established markets, emerging markets, and Elanco animal health, Eli Lilly said in a statement.

The objectives of the cost reducing programmes aim to reduce the company's cost structure by $1 billion."(The firm would have a)...Lower global headcount of 35,000 by the end of 2011, excluding strategic sales additions in high-growth emerging markets and Japan," the company said.

At present, the company has an employee strength of about 40,500 globally.

The company would establish a development Center of Excellence to streamline and accelerate late-stage development of new medicines.

Further, Eli Lilly would streamline the organisation and align corporate and administrative functions to support the business with a focus on improved quality, strong customer service and reduced costs.

"The changes we are announcing today will accelerate the progress of most exciting pipeline in our history, with more than 60 molecules currently in clinical development," Eli Lilly Chairman and Chief Executive Officer John C Lechleiter said.