Lilly To Streamline Indianapolis Operations

Eli Lilly and Co. announced plans to streamline a portion of its manufacturing operations in Indianapolis in an effort to align manufacturing capacity and engineering support services with the needs of the business. This streamlining affects sites that manufacture APIs for the insulin products Humalog and Humulin as well as the osteoporosis drug Forteo.
   
Lilly is offering a voluntary exit program to employees in selected areas, with enhanced financial incentives. This program is expected to reduce the company’s Indianapolis employment by as many as 500 people, mostly in manufacturing but a portion of R&D as well.
   
“For several years we have focused on strategic efforts to lower costs, increase flexibility, and improve productivity across the business,” said John C. Lechleiter, Ph.D., Lilly’s president and chief executive officer. “This strategy calls for reducing investments in some areas while increasing investments in others, and the streamlining decisions announced today are an example of this.”
   
Dr. Lechleiter added, “We are constantly assessing our manufacturing capacity and taking the necessary steps to align it with the demands of the business. In particular, we must align our production capacity with anticipated customer demands over a time period in which some products will lose patent protection while other new products are launched.”
   
“While these are necessary decisions, they are difficult because they affect our people,” said Dr. Lechleiter. “From a peak employment level in mid-2004, we have reduced our global headcount by 12%, or about 5,500 people. These reductions have occurred primarily through attrition. But at times, including this one, we have had to take additional measures as we have restructured our operations. As we fulfill our responsibilities to all of our stakeholders, we are intent on upholding the Lilly values by treating all employees — particularly those directly affected by these changes — fairly and with the utmost respect.”