An intensely competitive pricing environment for diabetes treatments has led to declining performance and deep cuts at the Indianapolis-based drug giant. Lilly plans to cut 3,500 employees, mostly by year end, and many through an early retirement program. (For the record, this writer would appreciate an early retirement program.) Other reductions will be achieved by closing a manufacturing facility in Larchwood, IA., and shuttering R&D facilities in Bridgewater, NJ and Shanghai, China. Lilly expects to incur one-time charges of approximately $1.2B and achieve $500M in annual savings.