With its structural changes, CSL expects to generate $500 to $550 million in annualized savings over the next three years.
Australian multinational CSL is parting ways with 15% of its workforce as part of a sweeping restructuring push, with an eye toward streamlining its operations and boosting its clinical and commercial performance.
As part of this strategic initiative, CSL will also spin off its vaccines business, CSL Seqirus, into its own independent entity, effective before its 2026 financial year ends in June next year. The pharma will also cut back on its overall expenditure, “including consolidation of R&D footprint,” according to its full fiscal year earnings report on Tuesday.
For the 12 months ending June 30, 2025, CSL had more than 29,000 full-time employees, as per its annual report. This means that around 4,350 people could be affected by this latest round of layoffs.
These structural changes come after the company last month announced that it was consolidating its R&D team, though it didn’t reveal at the time how many employees would be affected. In a statement to Fierce Biotech at the time, a CSL spokesperson noted that moving forward, the company will increasingly turn to external partnerships in beefing up its pipeline.
The restructuring will cost CSL around $700 million to $750 million in one-off expenditures, but the effort is expected to result in $500 to $550 million in annualized savings over the next three years. The company will reinvest this money into “high priority opportunities,” including research into its focus programs and developing new disease targets.
CSL will also implement changes to its operating model. Two of its business arms—CSL Behring and CSL Vifor—will each integrate their medical and commercial operations to improve synergy and drive “additional revenue growth opportunities.” The R&D, business development and commercial groups under these two units will also be combined, according to CSL’s Tuesday release.
The pharma recorded $3 billion in net profit for its 2024–2025 fiscal year, up 17% year-on-year at constant currencies. For the coming 12 months, CSL expects its revenue to grow around 4% to 5%, with underlying profit hitting $3.55 billion, excluding the non-recurring costs associated with its restructuring initiative, according to the company’s annual report.
