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Finance Watch: Lilly Cuts 3,500 Jobs Globally To Drive Growth

 
• By Mandy Jackson

Lilly will save $500m annually starting in 2018 after $1.2bn in layoff-related costs to reinvest in new products. Also, Cytori halves its headcount; VC OrbiMed closed a $551m Asia fund; and Insmed capitalizes on positive data.

Finance Watch

Eli Lilly & Co. is cutting costs by chopping 3,500 jobs from its payroll and will spend the $500m in annual savings on activities that will help the company grow its revenue – research and development for new medicines and support for newly approved products.

Investors cheered the strategy announced on Sept. 7 – part of an ongoing review of productivity that's meant to improve Lilly's cost structure – sending the company's stock up 1.3% to close at $81.54 per share

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