Australia's largest medical company CSL to cut 3,000 jobs in major restructure

Sky News AU

3 hours ago

Australia's largest pharmaceutical company will slash about 3,000 jobs across the globe as the company battles the global economic upheaval of Donald Trump's tariff agenda.
Melbourne-headquartered CSL, a global biotechnology business specialising in bloods, vaccines and plasma products, on Tuesday revealed it will slash about 15 per cent of its staff in a sweeping restructure.
In an announcement on the ASX, the company noted changing business conditions put pressure on it to restructure its operations.
'A dynamic geopolitical backdrop, competitive pressure and organisational complexity have challenged CSL and hindered its ability to deliver superior returns,' CSL said.
It outlined an approach to 'driving growth, simplification and shareholder returns' which includes cost-cutting measures and merging its blood plasma and iron deficiency departments.
The company also revealed it had closed 22 underperforming centres in August that represented about seven per cent of CLS's plasma footprint in the US.
'The initiatives … will result in a net headcount reduction of up to 15 per cent of CSL's employee base,' the company said.
It noted the company restructure will end up impacting between about $400-$450m of cash flow in the 2026 financial year, while it will have a $100m impact in the 2027 financial year.
However, the company predicts it will save about $550m annually over the next three years.
CSL's chief executive Paul McKenzie lauded the company's business transformation amid market volatility impacting its operations.
'It is from this position of strength that we are taking the opportunity to make significant changes that will continue to drive shareholder returns over the long run,' Mr McKenzie told shareholders
'The transformational initiatives we are announcing today will further reshape and simplify the business, provide a platform to renew CSL's focus on our core strengths, and ultimately create even more value for our stakeholders through sustainable, profitable growth.'
Alongside the restructure, CSL's influenza vaccine business, Seqirus, will be spun out of the company and become a separate entity on the ASX.
As CSL revealed an array of job cuts, the pharmaceutical company also posted a 14 per cent profit jump in the 2025 financial year to USD$3.3 billion (AUD$5.1 billion).
Its share price tanked, however, sinking 12.6 per cent as of 12.30pm on Tuesday and wiping about $13 billion off its market cap.
The company has struggled with uncertainty after the US President earlier this month signalled he may impose massive 250 per cent tariffs on pharmaceutical imports.
Trump said at the start of August he would impose a 'small' tariff on imported pharmaceutical products before hiking it to 150 per cent within 18 months and eventually to 250 per cent.