New York - US pharmaceutical firm Eli Lilly said Monday it would cut 14 per cent of its workforce by the end of next year in effort to trim costs. The Indianapolis, Indiana-based company said it would decrease its workforce by 5,500 jobs to 35,000 employees. Together with other cuts and a new organizational structure, Eli Lilly hopes to save 1 billion dollars per year.
"While our financial performance during the past few years has been strong, we will soon enter the most challenging period in our company's history. This calls for strong measures to speed our output of new medicines, better meet the changing needs of our customers and reduce our costs," chief executive John Lechleiter said in a statement.
The company has faced stiff competition from cheaper generic medications, while the expiration of important patents looks to cause further cuts to its bottom line.
The company is to divide its operations into five divisions: cancer treatment, diabetes medication, traditional markets, developing markets and veterinary medicine.
Eli Lilly said it expects earnings of 4.20 to 4.30 dollars per share for the year.
