3000 jobs cut in $12 billion wipeout

Yahoo

2 days ago

Australia's largest pharmaceutical company could cut nearly 3000 jobs from its workforce as it looks to reduce its headcount across a number of businesses.
The biggest shake up of the business in decades will see nearly 15 per cent of the global workforce reduced in a move aimed at 'simplifying the business.'
Currently CSL employs about 30,000 staff globally.
CSL said the one-off restructure would cost the business $770m pre tax before saving $500 to $550m over the next three years.
The business said it would use these savings to invest in 'high priority' opportunities.
Its share price dropped 11.15 per cent off the back of Tuesday morning's news — wiping roughly $12 billion off the company's market cap.
CSL also announced its intention to demerge its influenza prevention vaccines-focused unit known as Seqirus into a separate ASX listed business in 2026.
Gordon Naylor, a former president of CSL Seqirus, will run the new business.
It will also combine the commercial and medical operations of its core blood plasma and iron deficiency businesses into one unit.
The remaining CSL group will continue to have positions in multiple rare and serious diseases.
The demerger will be subject to third party consents, regulatory approvals and CSL will conduct a voluntary shareholder vote.
It has been tough 12 months for CSL, with the business facing unpredictable tariffs on its exports to the United States.
On August 6 US President Donald Trump announced the first 'small tariff' on foreign-made drugs.
'We'll be putting (an) initially small tariff on pharmaceuticals,' Mr Trump told US business news channel CNBC.
'In one year, one-and-a-half years maximum, it's going to go to 150 per cent and then it's going to go to 250 per cent because we want pharmaceuticals made in our country.'
He did not say what the initial rate would be, but earlier in the year he said duties on the sector would start from 25 per cent.
Mr Trump said he is lifting prices as he wants to make American drugs cheaper for locals.
CSL on Tuesday announced a 14 per cent increase in full-year underlying profits, up to $US3.3bn ($5.1bn) which was at the top of its forecasts.
eToro market analyst Josh Gilbert said while the restructing comes with a sizeable one off cost, the move is expected to sharpen the group's focus on its high-growth plasma and kidney care business.
'For investors, the view here is that CSL is trying to create a clearer business structure and improve investor returns. However, markets hate uncertainty, and this shake-up brings plenty of it,' he said.
'These are huge changes that come with execution risk, and in my view, the market will react poorly to the news short term.'
Mr Gilbert said CSL overall delivered a 'solid' full-year result with net profit ahead of expectations.
'But the real headline isn't the profit beat, it's the sweeping shake-up announced alongside it. As part of a major reset, CSL will reduce its workforce by around 15 per cent, close underperforming plasma centres, and spin off its Seqirus vaccine arm to list separately on the ASX by the end of the fiscal year,' he said.
CSL chief executive officer Paul McKenzie said the business recognises a dynamic global backdrop, competitive pressure and organisation complexity have challenged CSL and hindered its ability to deliver superior returns.
'CSL Seqirus continued to show the resilience of its differentiated portfolio and platforms by
generating growth in a challenging environment,' he said.
'The majority of avian flu contracts globally were awarded to CSL Seqirus, which was strong recognition of our best-in-class, differentiated platforms.'