CSL plans to trim as much as 15% of its staff as part of a sweeping overhaul aimed at lowering R&D expenses and preparing a spinout of its vaccine arm.
In its full-year earnings report released today, the Melbourne-based company said it would shrink its fixed-cost base and boost pipeline efficiency by consolidating its R&D operations.
According to the filing, the funds freed up through these measures will be funneled into priority projects and the pursuit of novel disease targets from both in-house and external efforts.
The restructuring was previewed last month, when management noted it was conducting a tactical review of research activities with the aim of cutting duplication and boosting efficiency.
A spokesperson explained in July that the group intends to rely more heavily on a strategic blend of in-house expertise and external collaborations to advance its pipeline, noting that this approach will ultimately mean maintaining a smaller global workforce.
At that time, the scale of the job losses wasn’t disclosed. Now, the latest filings project that as many as 15% of staff will be affected. The reduction is expected to result in pre-tax charges of $700 million to $770 million in 2026, while the broader restructuring is anticipated to generate annual savings of $500 million to $550 million over the following three years.
The overhaul extends beyond research and development. The company has also introduced a new Portfolio Development and Commercialisation (PD&C) model, designed to merge R&D, commercial and business development divisions into a single integrated structure.
The business is currently organized into multiple segments: CSL Behring, which encompasses CSL Plasma and specializes in uncommon, severe conditions such as bleeding disorders; CSL Seqirus, its influenza vaccine arm; and CSL Vifor, which is dedicated to nephrology and iron deficiency.
As part of the transformation, the firm plans to spin off CSL Seqirus and list it as a separate company on the Australian Stock Exchange by June 30, 2026, the close of the next Australian financial year.
CSL Vifor, the maker of the iron therapy Venofer, and CSL Behring will integrate their medical and commercial operations to unlock synergies and create new avenues for revenue expansion.
Last autumn, CSL Behring, the producer of the hemophilia gene therapy Hemgenix, closed its Pasadena, California, research hub dedicated to cell and gene therapies. The shutdown impacted around 60 employees, according to a source familiar with the matter. The move formed part of a broader reassessment of the strategy for ex vivo gene therapies that rely on lentiviral vectors, the source said.
In the announcement, CEO Paul McKenzie noted that the company has managed to grow this year, even while facing an exceptional degree of disruption and uncertainty in its external environment.
He added that the firm was unveiling major initiatives designed to transform and streamline operations, strengthen both the clinical and commercial performance, and create a foundation that allows it to concentrate on its core capabilities.
This restructuring mirrors moves seen across the biotech sector, where pressure to optimize R&D investments is intensifying. How the Seqirus spin-off is received by investors and whether the savings target is met without weakening the pipeline will be the key metrics to follow.
Managing workforce morale during this transition will also be critical, as reductions can risk the loss of valuable institutional knowledge. At the same time, the strategy could give the organization greater flexibility to pursue partnerships and accelerate the development of high-value therapies.
In the announcement, CSL’s CEO Paul McKenzie noted that the company has managed to grow this year, even while facing an exceptional degree of disruption and uncertainty in its external environment.
