Topline Findings
- CSL Workforce Reductions: The company will lay off up to 15% of employees and close 22 underperforming US-based plasma centers to streamline operations and improve efficiency.
- Cost Savings and Strategic Transformation: Restructuring is expected to generate $500–$550 million in annualized savings over three years, with one-off costs of $560–$620 million post-tax recognized in 2026.
- CSL Seqirus Demerger and Operational Focus: The influenza vaccine business will become a standalone ASX-listed company, while CSL integrates R&D, commercial, and medical teams to enhance pipeline productivity and revenue growth.
CSL announced it will be laying off up to 15% of its total workforce as part of a broader strategic transformation aimed at simplifying operations, reducing complexity, and improving efficiency across R&D, commercial, and corporate functions. As part of the restructuring, CSL will close 22 underperforming US-based plasma centers, representing 7% of its plasma footprint.
Despite the layoffs, the company reported strong financial results for the year ending June 30, 2025, with a net profit of $3 billion after tax.1
How Does CSL Plan to Reshape Operations and Boost Efficiency?
"I am pleased to report another on-target result for the 2025 financial year, led by CSL Behring and continued strong demand for our life-saving plasma therapies,” said Paul McKenzie, CEO, CSL, in a press release. "CSL Seqirus continued to show the resilience of its differentiated portfolio and platforms by generating growth in a challenging environment. CSL Vifor grew strongly, underpinned by our resilient iron business and pleasing momentum across the nephrology portfolio.”
Cost Impact and Expected Savings
CSL estimates the layoffs will cost $700–$770 million pre-tax and $560–$620 million post-tax, to be recognized in 2026. The company expects the restructuring to generate annualized savings of approximately $500–$550 million over the next three years, freeing resources for high-priority programs and growth initiatives.
Operational and Strategic Changes
- As part of the transformation, CSL Behring and CSL Vifor will combine medical and commercial functions to deliver additional synergies and revenue opportunities.
- The R&D footprint will be consolidated to improve pipeline productivity, while the plasma network will be optimized through the rollout of new platforms and manufacturing efficiencies.
- CSL Seqirus, the company’s global influenza vaccine business, is planned to be demerged into a standalone ASX-listed company, granting it strategic autonomy and simplifying management of the broader CSL group.1
“A demerger will allow autonomy to set an independent strategic direction, including capitalizing on potential opportunities that may arise in a highly dynamic vaccines market, as well as reducing complexity, making the business more agile and efficient to manage,” CSL stated, in the press release.
Industry-Wide Workforce Reductions
The layoffs are the latest in a wave of workforce reductions sweeping the pharmaceutical industry in recent months.
- Last week, Fate Therapeutics, Generation Bio, and ORIC Pharmaceuticals announced plans to lay off 12%, 90%, and 20% of their employees, respectively.
- Fate Therapeutics cited that its layoffs were part of an effort to extend its cash runway through 2027 and support its iPSC-derived CAR T-cell programs.
- Generation Bio stated that the move was part of a strategic review exploring potential mergers, acquisitions, or other transactions while maintaining core research capabilities.
- ORIC Pharmaceuticals said that its layoffs were part of a strategic reprioritization to focus exclusively on its two lead clinical programs, ORIC-944 in prostate cancer and enozertinib in non-small cell lung cancer.2
Earlier this month, pharmaceutical giants Bayer, Merck, and Moderna all announced reductions to their workforces.
- As part of a restructuring plan under CEO Bill Anderson, Bayer announced that it had laid off 12,000 employees to date, with the goal of saving $2.3 billion by next year.3
- Merck announced plans to cut 3,000 jobs as part of a broader cost-saving initiative aimed at reducing annual expenses by $3 billion by the end of 2027.4
- Moderna announced that it will be cutting its global workforce by 10% in an effort to operate with fewer than 5,000 employees by year-end.5
CEO Emphasizes Strategic Focus
Summing up the rationale behind the restructuring, McKenzie emphasized the company’s focus on operational efficiency and strategic priorities.
"These changes are designed to focus our organization on three Ps: pipeline, productivity and people,” he said, in the press release. “They will make us match-fit and instill a lean and efficient mindset, reduce complexity and simplify our operating model.”
References
- CSL announces rise in full year net profit. PR Newswire. August 18, 2025. Accessed August 19, 2025. https://www.prnewswire.com/news-releases/csl-announces-rise-in-full-year-net-profit-302532746.html
- Layoffs Continue Across Biotech Industry as More Companies Restructure and Reprioritize. PharmExec. August 14, 2025. Accessed August 19, 2025. https://www.pharmexec.com/view/layoffs-continue-across-biotech-industry-companies-restructure-reprioritize
- Bayer Layoffs Reach 12,000 in Ongoing $2.3 Billion Restructuring Plan. PharmExec. August 7, 2025. Accessed August 19, 2025. https://www.pharmexec.com/view/bayer-layoffs-12-000-ongoing-2-3-billion-restructuring-plan
- Merck to Cut 6,000 Jobs as It Aims for $3 Billion in Cost Savings by 2027. PharmExec. August 1, 2025. Accessed August 19, 2025. https://www.pharmexec.com/view/merck-cut-6-000-jobs-3-billion-cost-savings-2027
- Moderna to Reduce Workforce by 10% Amid Cost Restructuring. PharmExec. August 1, 2025. Accessed August 19, 2025. https://www.pharmexec.com/view/moderna-reduce-workforce-10-cost-restructuring
