CSL to cut 3000 jobs: Biotech giant’s spin-off flu vaccines arm in major restructure

Biotech giant CSL was the worst performer on the Australian Securities Exchange on Tuesday after revealing 3000 job cuts at the same time it announced a major restructure under which its flu vaccine arm will be spun off into a separately listed company.

CSL shares slumped 16.9 per cent at the close to $225.50, wiping around $22 billion off its market value, after it revealed Seqirus, which makes seasonal influenza vaccines, would list on the ASX before the end of the 2026 financial year.

The biotech said the demerger would “allow autonomy to set an independent strategic direction” and make the business “more agile and efficient to manage”.

Seqirus contributed $US2.2 billion ($3.4b) of CSL’s total revenue of $US15.6b in the 12 months ended June 30. Net profit rose 17 per cent to $US3b, just above analyst estimates of $US2.97b.

The biggest shake-up of the business in decades would also see its core Behring — which collects and processes blood plasma — and Vifor — which focuses on iron deficiency and nephrology — businesses combine medical and commercial functions.

It would result in a net headcount reduction of up to 15 per cent of CSL’s employee base. While it employs about 30,000 staff globally, no firm number was put on the job cuts.

CSL closed 22 underperforming US plasma centres this month and will now consolidate its research and development from 11 sites into six.

These initiatives would deliver cost savings of between $US500 million and $US550m progressively over the next three years.

CSL is Australia’s third-biggest company, with a market capitalisation of about $109b.

“Our business has grown this year despite an unprecedented level of challenge and volatility in our external operating environment,” CSL chief executive Paul McKenzie said.

“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.

“The long-term outlook for CSL’s therapies and vaccines remains distinctly positive, with multiple growth opportunities driven by increasing patient demand, unique competitive positions, and scalable platforms.”

The shake-up comes as US President Donald Trump threatens to slap tariffs of up to 250 per cent on pharmaceuticals, one of Australia’s biggest exports to the US.

Blood products such as antiserum and plasma used in medical testing and treatments made up $1.8b of this, with CSL the major player.

Medicines and pharmaceutical products were the third-biggest good exported to the US in 2024, with the trade worth more than $2b that year.

CSL on Tuesday said group revenue growth in the 2026 financial yeas was anticipated to be about 4 to 5 per cent stronger than last year.

Net profit for this year, excluding the non-recurring restructuring cost, is expected to be in the range of about $US3.45b to $US3.55b at constant currency, representing growth over the 2025 financial year of about 7 to 10 per cent.

Dr McKenzie said the guidance assumed no impact from pharmaceutical sector tariffs.

“It is our current expectation that any such policy would not impact our ability to deliver on the strategic initiatives outlined today,” he said.

“CSL has significant operations in the US and the majority of our commercial portfolio is drug-sourced from there.”

CSL plans to buy back $750m of shares this financial year, the first step in a multi-year buyback.