CSL to slash headcount by 15% and spinout its CSL Seqirus vaccines business

CSL has outlined a series of wide-ranging changes across its business units that will see staff numbers cut, its CSL Seqirus vaccines business spunout and a new operating model put in place.

The Australian biotech company’s shares ended its 2025 financial year on a five-year low, amid tumbling shareholder returns and increasing pharma market uncertainty.

CSL’s planned changes will also consolidate its R&D footprint and combine medical and commercial functions at its CSL Behring and CSL Vifor units.

As a result, CSL’s headcount, which currently stands at 29,000, will be cut by 15 percent. The programme will have an initial pre-tax cost of $700-770 million and is then expected to deliver annualised cost savings of $500-550 million over the next three years.

Although the company’s net profit after tax rose by 17 percent to $3 billion for the 12 months to June 2025, that hasn’t been translated into across the board growth and CSL is looking to refocus.

Dr Paul McKenzie, CSL’s Chief Executive Officer and Managing Director, said: “Our business has grown this year despite an unprecedented level of challenge and volatility in our external operating environment.

“Today we are announcing transformational initiatives to reshape and simplify the business, enhance clinical and commercial execution and provide a platform for CSL to focus on our core strengths.”

Looking to build “resilience in a complex operating environment”, CSL will move to a leaner, simplified Portfolio Development and Commercialisation operating model that will integrate R&D, business development and commercial teams

The company also wants to optimise its plasma collection network, and this month closed 22 centres it identified as underperforming with that number representing 7% of CSL Plasma’s US footprint.

Meanwhile, demerging CSL Seqirus – which was among those hit by recent US mRNA research cuts – will create a standalone vaccine company that will be listed on the Australian Stock Exchange before the end of its 2026 financial year and chaired by former CSL Seqirus President Gordon Naylor.

Dr Brian McNamee, Chair of CSL, said: “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.”

The company will bolster itself with a share buyback programme starting with Aus$750 million in its 2026 financial year. But it doesn’t expect to be impacted by US pharmaceutical sector tariffs, noting that it already has significant operations in the US and most of its commercial portfolio is domestically sourced.