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Despite posting US$3 billion in net profit after tax in the most recent financial year, Australian-headquartered global biotechnology company CSL is set to cut 15 per cent of its headcount.
In a statement issued earlier this morning (Tuesday 19 August), AEST, CSL – which is headquartered in Melbourne, and founded Down Under in 1916 – unveiled a reported net profit after tax of US$3.0 billion for the 12 months ended 30 June 2025, with underlying profit up to US$3.3bn.
CSL chief executive and managing director, Dr Paul McKenzie, said: “Our business has grown this year despite an unprecedented level of challenge and volatility in our external operating environment.”
With this in mind, the company unveiled “transformational initiatives intended to reshape and simplify the business, enhance clinical and commercial execution, and provide a platform for CSL to focus on our core strengths”, he said.
These changes, Dr McKenzie said, will allow CSL to focus on its pipeline, productivity, and people: “they will make us match-fit and instil a lean and efficient mindset, reduce complexity and simplify our operating model”.
Among these changes is a reduction in the company’s global headcount of approximately 15 per cent of employees.
According to its website, CSL employs over 29,000 staff globally - meaning around 4,350 people could lose their jobs worldwide.
CSL’s one-off restructuring costs, it estimates, will be approximately $700-$770 million (pre-tax) and $560-$620 million (post-tax) in FY26, with a cashflow impact of up to $450 million this financial year, and a further $100m in FY27.
“The initiatives are expected to drive annualised cost savings of $500-550 million progressively over the next three years” by the end of FY27, the company said in a statement.
Elsewhere, CSL intends to demerge its seasonal influenza vaccines, CSL Seqirus, to shareholders, which it said would create an ASX-listed global vaccine leader
“A demerger will allow autonomy to set an independent strategic direction, including capitalising on potential opportunities that may arise in a highly dynamic vaccines market, as well as reducing complexity, making the business more agile and efficient to manage,” the company said.
Speaking about the strategic updates, Dr McKenzie said: “We firmly believe that a simplified and focused CSL is best for patients, best for our people, and best for our shareholders.”
“The changes announced today will deliver enduring patient value and durable shareholder returns,” he said.
CSL chair Dr Brian McNamee AO added: “The board and management team are unified in our confidence in the outlook for CSL. We also recognise the need to simplify our structure and remain agile in order to capture this growth. The significant initiatives Paul and his team have outlined today will provide CSL with a renewed focus that will improve shareholder returns.”
“This demerger of CSL Seqirus to our shareholders will create an ASX-listed, global influenza vaccine leader. The company has a great future that will be driven by its strong competitive position in an improving market,” he said.
Dr McKenzie also noted that the company’s revenue growth in FY26 is anticipated to be around 4-5 per cent.
“I look forward to keeping the market updated on our progress as we deliver sustainable, profitable growth,” he said.
HR Leader has also reported extensively on redundancy rounds at businesses across the country in recent months, including those at Art Gallery of NSW, WaterNSW, Atlassian, Indeed and Glassdoor, Telstra, Westpac, and CBA.
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Jerome Doraisamy is the managing editor of Momentum Media’s professional services suite, encompassing Lawyers Weekly, HR Leader, Accountants Daily, and Accounting Times. He has worked as a journalist and podcast host at Momentum Media since February 2018. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.
