The Indianapolis Start reported last Friday that Lilly will be cutting 340 information technology jobs in Indiana. They will probably cut another 170 manufacturing jobs by the end of 2010, and most of those jobs will be in Indiana as well.
In fact, Lilly will be cutting approximately 5,500 jobs by the end of 2011. So far, Lilly has announced 2,000 job cuts, so they're almost half-way there. Lilly currently employs 12,400 people in Indiana. The population of Indianapolis is 6,423,113, so Lilly employs 0.2% of the population of Indiana. That's a fairly significant impact in a single state.
Why all these job cuts in the pharmaceutical industry? Are these the effects of the global recession, or is there something more specific that's happening within the biopharma industry? Over the next 3 years, Lilly will lose patents on four of its bestselling drugs, so that's going to have a considerable impact on its $22 billion annual revenue.