This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Eli Lilly To Lay Off 5,500 Workers

INDIANAPOLIS ( TheStreet) -- Eli Lilly (LLY - Get Report) will lay off some 5,500 employees by the end of 2011, as the drugmaker prepares to face a slew of patent expirations, including one on its best-selling drug, the antipsychotic Zyprexa.

The Indianapolis company also said it would reorganize itself into four business units and strive to cut costs by $1 billion a year, also by the end 2011.

Or, as Lilly called the moves in its press release announcing the layoffs and the restructuring: "Lilly Unveils Blueprint for Speeding Innovative Medicines to Patients."

The job cuts will bring the company's work force to 35,500 from 40,500. But Lilly also said it expects to hire people in emerging markets and in Japan, where business is growing fastest.

Lilly also kept its earnings guidance for the year at the already forecast $4.20 to $4.30 a share, excluding charges. Wall Street analysts have a per-share profit estimate of $4.28 a share.

Lilly shares were trading recently at $33.03, up 21 cents, or 0.6%.

-- Written by Scott Eden in New York

Follow on Twitter and become a fan on Facebook.
Scott Eden has covered business -- both large and small -- for more than a decade. Prior to joining, he worked as a features reporter for Dealmaker and Trader Monthly magazines. Before that, he wrote for the Chicago Reader, that city's weekly paper. Early in his career, he was a staff reporter at the Dow Jones News Service. His reporting has appeared in The Wall Street Journal, Men's Journal, the St. Petersburg (Fla.) Times, and the Believer magazine, among other publications. He's also the author of Touchdown Jesus (Simon & Schuster, 2005), a nonfiction book about Notre Dame football fans and the business and politics of big-time college sports. He has degrees from Notre Dame and Washington University in St. Louis.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LLY $86.48 5.40%
AAPL $117.29 -0.85%
FB $107.04 2.70%
GOOG $766.64 3.20%
TSLA $237.30 3.10%


Chart of I:DJI
DOW 17,888.35 +168.43 0.95%
S&P 500 2,102.63 +22.22 1.07%
NASDAQ 5,156.3060 +47.64 0.93%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs