Job cuts and restructuring for the makers of Cialis

According to several news articles including one posted on the business journal (bizjournals.com) Eli Lilly which makes the second most popular erectile dysfunction medication in the world “Cialis” will cut work force and restructure which will cut costs by up to 1 billion dollars. This new restructuring plan will unfortunately cut over 4,000 jobs from their world wide employees.

Organizing their corporate structure
They will be organizing their corporate structure into 5 different business levels which will include diabetes, oncology, new markets, existing established markets and its animal health section. This new structure will cut more than 11% of their current employees and by the end of 2011 they will have 35,000 employees due to these price cuts and restructuring plans. Currently Eli Lilly has over 39,000 employees on their team.

Why are they undertaking this new corporate structure?
They are facing many new trends and challenges in the industry which has lead them to restructure. Rising costs, patents that are expiring soon, competition from generics, slower innovations and of course the health care reform which is pending but just around the corner, these are a few of the main reasons for this movement

The companies CEO mentioned their financial performance during the past years has been strong but the upcoming years are going to be some of the most challenging times in its history. This will help the company speed up their research on new medications and help them reduce costs for their customers.

The company is based in Indianapolis and has its products marketed in over 140 countries. They purchased the Icos Corporation back in 2007 which introduced Cialis into the market. Eli Lilly paid over 2 billion dollars for them and laid off all of their employees. Cialis is now one of the most popular and known impotence medications in the world that has been approved for daily use and is known to most men as the weekend pill for its 36 hour effects.