Eli Lilly and Co. plans to streamline operations that will result in global workforce reductions impacting approximately 3,500 positions. The company expects annual savings of approximately $500 million that will begin to be realized in 2018. Lilly expects the majority of the positions eliminated to come from a U.S. voluntary early retirement program. The program will be mostly complete by December 31, 2017. 

Remaining positions will come from other anticipated workforce reductions, including select site closures. The company will move production from its animal health manufacturing facility in Larchwood, IA, to an existing plant in Fort Dodge, IA. In addition, an R&D office in Bridgewater, NJ, and the Lilly China R&D Center in Shanghai will close.

“We have an abundance of opportunities—eight medicines launched in the past four years and the potential for two more by the end of next year,” said David A. Ricks, Lilly’s chairman and chief executive officer. “To fully realize these opportunities and invest in the next generation of new medicines, we are taking action to streamline our organization and reduce our fixed costs around the world. The actions will result in a leaner, more nimble global organization and will accelerate progress towards our long-term goals of growing revenue, expanding operating margins and sustaining the flow of life-changing medicines from our pipeline.”