Eli Lilly Announces Pay Freeze for Most Employees
Indianapolis-based Eli Lilly & Co. announced Wednesday that it is suspending base pay increases for most of its employees next year.
In a statement, the company said employees would be eligible for those pay increases again in 2015. Lilly will also be reducing company bonuses by 25% for 2014. Those bonuses are paid in 2015. The company expects to save about $400 million through 2016.
"This is a difficult, but necessary decision. While we remain confident in our future, we continue to face the most significant challenges in our history," Lilly spokesman Ed Sagebiel said. "We expect to lose about 20 percent of our global revenue in 2014 because of the expiration of the Cymbalta and Evista patents in the U.S. While we've taken many actions to reduce costs and become a leaner organization, we must do more."
The decision comes after Eli Lilly announced layoffs of sales representatives in April.