I read a news article this week from a credible source that said it cost Lilly $1.2Billion dollars (which they will write off on 17 Q3 & Q4 reports), just to save $500Million next year. SMH. How does that math work???
OK. Maybe I should have been more clear: It is costing Lilly $1.2BILLION to lay off 3500 people right now which they will write off in Q3 & Q4, 2017. All for a cost savings of $500MILLION in 2018. How many years will it take to make up that $1.2 BILLION??? Who’s the idiot now, idiot???
annual savings of $500 million means by 2020 we'll start to realize savings. this is a good move on Ricks' part.
It depends on the second part of the equation, revenue growth. With al if the blockbuster releases lined up to treat disease states no one else treats it’s a sure fire success. Oh wait..,I forgot.
Savings answer: as of 1:1, They immediately move the 2400 VERPers from payroll to Pension Plan (which is fully funded). Company wins company always wins.
