CSL has announced it will slash 3000 roles. Picture: NewsWire / Nicholas Eagar
Australia’s largest pharmaceutical company could cut nearly 3000 jobs from its workforce as its latest results failed to inspire investors.
Nearly 15 per cent of CSL’s global workforce will be reduced in the biggest shake-up of the company in decades aimed at “simplifying the business”.
CSL employs about 30,000 staff globally.
Its share price dropped 16.79 per cent off the back of Tuesday morning’s news – wiping about $20bn off the company’s market cap.
CSL’s share price slumped throughout the trading day. Picture: Supplied
The Australian-listed business’s job shedding comes as part of a major overhaul that CSL says is needed to meet geopolitical and commercial challenges.
Some of the job cuts will come from the closure of 22 underperforming plasma centres in the 2026 financial year along with a reduction in research and development across its business units.
CSL said it was operating in a “significantly changing environment”.
“A dynamic geopolitical backdrop, competitive pressure and organisational complexity have challenged CSL and hindered its ability to deliver superior returns,” the company said in a statement to the ASX.
The healthcare sector as a whole slumped on Tuesday. Picture: ASX
Shares slumped to a 52-week low and dragged the entire healthcare sector as a whole down on Tuesday.
CSL said the one-off restructure would cost the business $770m pre tax before saving $500m to $550m over the next three years.
The business said it would use these savings to invest in “high priority” opportunities.
CSL has announced it will slash 3000 roles. Picture: NewsWire / Nicholas Eagar
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.
IG market analyst Tony Sycamore said the market reacted negatively to the news.
“Inflicting pain on the index today, bio tech giant CSL dived more than 15 per cent,” he said
“Its falls came after the company announced plans to demerge influenza vaccine company CSL Seqirus as a separate ASX200 listed entity and as its guidance for 2026 fell short of consensus expectations.”
CSL Factory Broadmeadows Tour. Picture: Tim Carrafa
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.
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“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 was lifting prices as he wanted to make American drugs cheaper for US citizens.
CSL announced a 14 per cent increase in profits. Picture: NewsWire / Paul Jeffers
CSL on Tuesday announced a 14 per cent increase in full-year underlying profits, up to $US3.3bn ($A5.1bn) which was at the top of its forecasts.
eToro market analyst Josh Gilbert said while the restructuring came 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.”
CSL chief executive Paul McKenzie said the business recognised that a dynamic global backdrop, competitive pressure and organisation complexity had 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.”