Photo: Brian Hubbard (flickr)
Indianapolis-based Eli Lilly is suspending base pay increases for most of its employees next year.
Employees would not be eligible for pay increases until 2015. Lilly will also be reducing company bonuses by 25-percent for 2014. Those bonuses are paid in 2015.
The company expects to save about $400 million through 2016.
Ed Sagebiel, Senior Director of Global Corporate Communications for Lilly, says the decision was difficult, but necessary.
He says the company expects to lose about 20 percent of its global revenue in 2014 because of the expiration of patents for its Cymbalta and Evista brands in the United States.
The decision comes after Eli Lilly announced layoffs of sales representatives in April.