Indianapolis-based Eli Lilly announced on Thursday that the company will be cutting almost 9% of its workforce.
This means the company will be cutting about 3,500 positions. The company had 41,240 workers employed around the world at the end of June.
Most of the jobs that will be cut will be through the a voluntary retirement program in the U.S.
Not only will the company slash jobs, but it will also close research and development sites in Bridgewater, New Jersey, as well as Shanghai. Lilly also plans to move production from an animal health manufacturing site located in Larchwood Iowa to another plant.
According to the company’s CEO David Ricks, the drug maker wants to streamline its business so that it can put money towards new treatments and capitalize on recently launched drugs.
From these cuts and moves, Lilly is expecting about $500 million in annual savings from the cuts.
Back in July, the company announced that it has forecast full year earnings in between $4.10 to $4.20 per share. The Street is expecting $4.16 per share according to FactSet.
Disclaimer: We have no position in Eli Lilly and Co. (NYSE: LLY) and have not been compensated for this article.