Lilly is offering a voluntary exit program to employees in selected areas, with enhanced financial incentives for those who leave the company. In total, the voluntary program is expected to reduce Lilly’s Indianapolis employment by up to 500 people, predominantly in manufacturing but with a small portion in selected areas of R&D. As a result of these actions the company will be taking an accounting charge in the second quarter of 2008.
These actions which affect sites that manufacture active pharmaceutical ingredients for the insulin products Humalog and Humulin as well as for the osteoporosis medicine Forteo, will align manufacturing capacity and engineering support services with the needs of the business.
John Lechleiter, Lilly’s president and CEO, said: “We are constantly assessing our manufacturing capacity and taking the necessary steps to align it with the demands of the business.”