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Eli Lilly 5,500 Jobs Cull Could Hit British Sites

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http://business.timesonline.co.uk/tol/busi...icle6834164.ece

Thousands of British jobs at Eli Lilly, the US pharmaceutical giant, are potentially under threat after the group announced plans to axe 14 per cent of its global staff in a bid to cut costs.

The drugs group announced today it is to slash 5,500 jobs as part of a broader shake-up aimed at cutting costs by up to $1 billion and speeding-up the development of medicines.

The Indianapolis-based company employs 40,500 people - 1600 of them in the UK at sites in Basingstoke, Speke in Liverpool and Erl Wood near Ascot.

The cuts, which exclude hirings in high-growth emerging markets and Japan, will be made within two years.

They come as the pharmaceuticals group prepares to lose patent protection for some key products including Zyprexa, the schizophrenia drug which is a top-seller. The group faces generic competition on the drug by late 2011.

John Lechleiter, chief executive, blamed the move on the "challenges" facing the global pharmaceutical industry. It had been hit, he said, by "slowing innovation, rising costs, patent expirations and increased generic competition."

He said: "The changes we are announcing today will accelerate the progress of the most exciting pipeline in our history. The changes will also ensure that we meet the changing needs of our customers and operate our business in a manner consistent with an increasingly challenging environment."

He said the best route to boosting profits was to focus on early and mid-stage drug candidates.

The shake-up will see the company reorganised into five key units - cancer, diabetes, established markets, emerging markets and Elanco, its animal health business.

It will save an estimated $1 billion in annual operating costs.

The group, which recently acquired ImClone Systems, the cancer drug maker for $6 billion, said it hopes to make some of the reductions through retirements and attritions.

It suggested most of the cuts will come from the US including its home state of Indiana where it employs around 13,600 people.

The job cuts are the latest to hit the sector, which has been hit hard by the slump.

In January, AstraZeneca, the UK's second-biggest drugmaker, said it expects to cut a further 6,000 jobs worldwide during the next four years.

The losses come on top of 7,600 redundancies that the company announced last year and mean it will have reduced its total headcount by more than 13,000 by 2013.

Fixed costs too high?

Then goodbye.

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I'd had started to get worried about the jobless recovery, it was appearing to lose traction. I wasn't sure if enough people where losing their jobs for us to have a real genuine recovery. However I'm more certain now that we will be having a sustainable jobless recovery as we've had two announcements today of major job losses in two separate industries.

It appears that we will be having a serious jobless recovery which should help restore stability to the global economy.

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I'd had started to get worried about the jobless recovery, it was appearing to lose traction. I wasn't sure if enough people where losing their jobs for us to have a real genuine recovery. However I'm more certain now that we will be having a sustainable jobless recovery as we've had two announcements today of major job losses in two separate industries.

It appears that we will be having a serious jobless recovery which should help restore stability to the global economy.

If companies have no staff, they will make huge profits from the non-payment of salaries.

It's logical really.

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Reality for big pharma is the low hanging fruit of ailments that can be cured by their chemicals has already been gotten imo. Time to move to the new paradigms of possibilities, of gene therapy, nano-engineered structures like nanoshells, of course stem cells and anti-aging medicine.

They don't need the legions of staff that they had in the glory days of the pharma industry. Unless they were smart and started putting their resource capital towards the new avenues of medicine opening up.

Is a staff of 6,000 at a research center including a few brilliant scientists.. any more effective than a tiny venture capital lab with 30 staff including those same few brilliant scientists.

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If companies have no staff, they will make huge profits from the non-payment of salaries.

It's logical really.

It's scary to think how many executives actually see it that way.

They get hired, outsource everything they can to India, fire as many people as possible, cut cost even in core quality and leave before the shit hits the fan. Then, they move on to the next victim.

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It's scary to think how many executives actually see it that way.

They get hired, outsource everything they can to India, fire as many people as possible, cut cost even in core quality and leave before the shit hits the fan. Then, they move on to the next victim.

Yes but they get paid well for this genius.

I mean it's not like any numpty could come up with this plan.

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