Share price dropped on news with one-off restructuring costs to be between $560 million and $620 million
CSL has announced it is cutting 15% of its global workforce as part of a major restructuring effort amid unprecedented volatility in the market.
The Australian multinational firm, which specialises in biotechnology, announced that the cuts are a part of its transformational initiatives to simplify the business.
"The initiatives will result in a net headcount reduction of up to 15% of CSL's employee base," according to a company statement.
The announcement did not disclose the exact number of employees affected, but its 2024-25 annual report said the company has more than 29,000 employees globally.
The share price dropped 16.89% following the announcement, according to data from the Australian Securities Exchange.
Meanwhile, one-off restructuring costs are expected to be between $560 million and $620 million in the 2026 financial year.
But the company expects annualised cost savings of up to $550 million progressively over the next three years from the restructure, with the majority to be achieved by the end of FY 2027.
"CSL will look to balance the reinvestment of these savings in high priority opportunities, with the need to deliver sustainable, profitable growth," the company said.
CSL restructuring
The restructure comes despite the company reporting a net profit after tax of US$3.0 billion for the 12 months ended 30 June 2025.
"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, CSL's Chief Executive Officer and Managing Director, in a statement.
"Our business has grown this year despite an unprecedented level of challenge and volatility in our external operating environment."
Part of the company's restructuring efforts includes the closure of 22 underperforming centres in August 2025, which represent seven per cent of CSL Plasma's US footprint.
Other changes include a new Portfolio Development and Commercialisation (PD&C) operating model that will integrate its R&D, Business Development, and Commercial teams.
It will also combine the medical and commercial functions of CSL Behring and CSL Vifor to deliver additional revenue growth opportunities.
"Corporate functions will be streamlined to align to the new operating model," the announcement read.
McKenzie said the changes announced by the company will deliver durable shareholder returns.
"These changes are designed to focus our organisation on three Ps: Pipeline, Productivity, and People. They will make us match-fit and instil a lean and efficient mindset, reduce complexity, and simplify our operating model," he said.
