One of the world's largest biotech firms, CSL to cut 3,000 Jobs and spin off its vaccine unit
CSL Limited is set to demerge its influenza vaccine division, CSL Seqirus, into a separate ASX-listed entity by the end of fiscal year 2026. This strategic move includes workforce reductions of up to 3,000 positions and the closure of underperforming plasma centers. Despite these changes, CSL anticipates a net profit increase and has announced a share buyback program.
CSL to Cut 3,000 Jobs Globally, Spin Off Seqirus Vaccine Unit in Major Restructuring Australian biotechnology leader CSL Limited has unveiled a significant restructuring plan, including the demerger of its influenza vaccine division, CSL Seqirus, and the elimination of up to 3,000 jobs globally. This strategic overhaul aims to streamline operations, enhance agility, and bolster shareholder value amid a challenging global economic landscape. CSL is one of the world's largest medical science companies and operates three divisions.
CSL plans to spin off CSL Seqirus into a separately listed entity on the Australian Securities Exchange (ASX) by the end of the 2026 financial year. Seqirus, formed in 2015 through CSL's acquisition of Novartis' influenza vaccine business, reported revenues of $2.2 billion and an operating result of $1 billion in the 2025 fiscal year.
The demerger is expected to unlock significant value, with CSL projecting annual pre-tax cost savings of $500-550 million by 2028. Gordon Naylor, former president of CSL Seqirus, will chair the new company, positioning it as a leading global player in the $7 billion influenza vaccine market.
The restructuring includes a reduction of up to 3,000 positions, excluding those in blood plasma collection centers. Additionally, CSL will close 22 underperforming plasma centers in the United States during the 2026 financial year. These measures are part of CSL's strategy to simplify its operations and improve efficiency in response to competitive pressures and geopolitical uncertainties.
Despite the restructuring, CSL reported a 14 percent increase in underlying net profit to $3.3 billion for the 2025 fiscal year. The company anticipates net profit for fiscal 2026 to be between $3.45 billion and $3.55 billion, representing a 7-10 percent increase over the previous year.To further enhance shareholder value, CSL announced a $750 million share buyback program and a final dividend of $1.62 per share, a 12 percent increase from the previous year.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
7 minutes ago
- Mint
Australian shares hit fresh high on mining and banks boost
Aug 21 (Reuters) - Australian shares rose to a record high on Thursday, driven by miners and banks, while investors awaited U.S. Federal Reserve Chair Jerome Powell's speech at the Jackson Hole symposium on Friday to gauge the interest rate trajectory. The S&P/ASX 200 index was up 0.6% at 8,966.80, as of 0043 GMT, after touching a fresh high of 8,973.70 earlier in the session. The benchmark has gained 2.6% so far this month, hitting multiple record highs as risk sentiment improved due to a slew of factors including an interest rate cut and positive corporate earnings. Investors around the globe are focussed on whether Powell will push back against market expectations for a rate cut next month when he speaks at the Fed's Jackson Hole symposium on Friday, following a weak jobs report for July. Traders are currently pricing in around an 82% chance of a 25-basis-point rate cut in September, according to the CME Fedwatch tool. Back in Australia, investors focussed on corporate earnings. Australia-listed shares of James Hardie deepened their rout from Wednesday, falling as much as 9.6% to A$28.92, their lowest level since January 20, 2023. The fibre cement maker on Wednesday flagged a bleak outlook for fiscal 2026 and forecast earnings below street view. Whitehaven Coal fell as much as 4.2% to a one-month low of A$6.160, as the coal miner's annual profit declined by more than half. Miners rose 1%, with BHP and Rio Tinto up 0.1% and 0.9%, respectively. Financials climbed 0.3%, with the "big four" banks rising between 0.1% and 0.7%. New Zealand's benchmark S&P/NZX 50 index rose 0.4% to 13,126.80. The Reserve Bank of New Zealand said the effect of interest rate cuts on the local economy had been slower than expected, with tariff threats impacting business and consumer confidence. (Reporting by Shivangi Lahiri in Bengaluru; Editing by Subhranshu Sahu)
Time of India
37 minutes ago
- Time of India
Asian stocks mixed, bonds climb ahead of Powell speech
US stocks are 'in the early days' of a bubble, although the critical point for a correction has yet to come, Oaktree Capital Management LP co-founder Howard Marks cautioned. Asian equities are poised for a mixed open as Wall Street favored bonds ahead of the Federal Reserve's Jackson Hole gathering. Fed officials highlighted inflation risks, fueling debate within the central bank. Technology stocks declined, with the 'Magnificent Seven' experiencing their longest losing streak since April, raising concerns about a potential market correction. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Asian equities were primed for a muted open Thursday as whipsawing trade on Wall Street favored bonds over stocks ahead of a key gathering of Federal Reserve futures for Japan were slightly lower while those for Chinese and Australian equity benchmarks inched higher. A gauge of US-listed Chinese shares climbed in New York on Wednesday, running against the grain of tech-led declines for US benchmarks. The S&P 500 fell 0.2% and the Nasdaq 100 dropped 0.6%. Treasuries climbed across the curve Wednesday, leaving the US 10-year yield two basis points dollar ended Wednesday little changed and the yen was stable Thursday after strengthening against the greenback in the prior session. Oil climbed Wednesday as a report showed a drawdown in US advance in bonds was a sign traders were shrugging off inflation concerns identified in the latest Federal Reserve meeting minutes released Wednesday. Swaps showed traders continued to price in a high probability of lower US interest rates in September - a wager that faces a key test as central bankers gather in Jackson Hole, Wyoming, with investors awaiting remarks from Fed Chair Jerome Powell.'The minutes are consistent with Powell's hawkish comments last meeting,' said David Russell at TradeStation. 'The bulls might get some cold water splashed in their faces at Jackson Hole.'Most Federal Reserve officials highlighted inflation risks as outweighing concerns over the labor market at their meeting last month, as tariffs fueled a growing divide within the central bank's rate-setting acknowledged worries over higher inflation and weaker employment, but a majority of the 18 policymakers in attendance 'judged the upside risk to inflation as the greater of these two risks,' according to the minutes of the Federal Open Market Committee's July 29-30 meeting.'The Fed will cut in September absent a re-tightening of the labor market combined with adverse inflation news,' Marco Casiraghi at Evercore said. He noted as a sign of stability, that the Fed minutes showed almost all participants believe the central bank 'was well positioned to respond in a timely way to potential economic developments.'In other Fed news, Governor Lisa Cook signaled her intention to remain at the central bank in defiance of calls for her resignation by President Donald Trump over allegations of mortgage technology stocks dropped with the Nasdaq 100 index declining for a second consecutive day Wednesday. A gauge of the so-called 'Magnificent Seven' large cap tech firms fell for a fourth consecutive day, the longest losing streak since mid stocks are 'in the early days' of a bubble, although the critical point for a correction has yet to come, Oaktree Capital Management LP co-founder Howard Marks for US megacaps dragged down the S&P 500 for a fourth straight session Wednesday, despite a bounce off session lows. While most major groups in the US equity benchmark finished higher, some strategists warned that the extra-heavy weighting of tech giants may turn the 'rotation' out of the sector into a broader rout.'Rotation can only take place if the tech stocks hold up,' said Matt Maley at Miller Tabak. 'If they decline, the only rotation we'll see will be into cash.'
Economic Times
37 minutes ago
- Economic Times
Asian stocks mixed, bonds climb ahead of Powell speech
US stocks are 'in the early days' of a bubble, although the critical point for a correction has yet to come, Oaktree Capital Management LP co-founder Howard Marks cautioned. Asian equities are poised for a mixed open as Wall Street favored bonds ahead of the Federal Reserve's Jackson Hole gathering. Fed officials highlighted inflation risks, fueling debate within the central bank. Technology stocks declined, with the 'Magnificent Seven' experiencing their longest losing streak since April, raising concerns about a potential market correction. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Asian equities were primed for a muted open Thursday as whipsawing trade on Wall Street favored bonds over stocks ahead of a key gathering of Federal Reserve futures for Japan were slightly lower while those for Chinese and Australian equity benchmarks inched higher. A gauge of US-listed Chinese shares climbed in New York on Wednesday, running against the grain of tech-led declines for US benchmarks. The S&P 500 fell 0.2% and the Nasdaq 100 dropped 0.6%. Treasuries climbed across the curve Wednesday, leaving the US 10-year yield two basis points dollar ended Wednesday little changed and the yen was stable Thursday after strengthening against the greenback in the prior session. Oil climbed Wednesday as a report showed a drawdown in US advance in bonds was a sign traders were shrugging off inflation concerns identified in the latest Federal Reserve meeting minutes released Wednesday. Swaps showed traders continued to price in a high probability of lower US interest rates in September - a wager that faces a key test as central bankers gather in Jackson Hole, Wyoming, with investors awaiting remarks from Fed Chair Jerome Powell.'The minutes are consistent with Powell's hawkish comments last meeting,' said David Russell at TradeStation. 'The bulls might get some cold water splashed in their faces at Jackson Hole.'Most Federal Reserve officials highlighted inflation risks as outweighing concerns over the labor market at their meeting last month, as tariffs fueled a growing divide within the central bank's rate-setting acknowledged worries over higher inflation and weaker employment, but a majority of the 18 policymakers in attendance 'judged the upside risk to inflation as the greater of these two risks,' according to the minutes of the Federal Open Market Committee's July 29-30 meeting.'The Fed will cut in September absent a re-tightening of the labor market combined with adverse inflation news,' Marco Casiraghi at Evercore said. He noted as a sign of stability, that the Fed minutes showed almost all participants believe the central bank 'was well positioned to respond in a timely way to potential economic developments.'In other Fed news, Governor Lisa Cook signaled her intention to remain at the central bank in defiance of calls for her resignation by President Donald Trump over allegations of mortgage technology stocks dropped with the Nasdaq 100 index declining for a second consecutive day Wednesday. A gauge of the so-called 'Magnificent Seven' large cap tech firms fell for a fourth consecutive day, the longest losing streak since mid stocks are 'in the early days' of a bubble, although the critical point for a correction has yet to come, Oaktree Capital Management LP co-founder Howard Marks for US megacaps dragged down the S&P 500 for a fourth straight session Wednesday, despite a bounce off session lows. While most major groups in the US equity benchmark finished higher, some strategists warned that the extra-heavy weighting of tech giants may turn the 'rotation' out of the sector into a broader rout.'Rotation can only take place if the tech stocks hold up,' said Matt Maley at Miller Tabak. 'If they decline, the only rotation we'll see will be into cash.'
