Earnings day hasn’t quite been a shining one for CSL Ltd (ASX:CSL), with the $117 billion biotechnology bluechip unveiling plans to trim its global workforce by as much as 15% as it looks to save $550 million annually.
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That’s not all CSL announced alongside its earnings, either – the biotech giant will also be splitting its vaccines business, CSL Seqirus, off into its own entity.
Gordon Naylor, who presided over Seqirus in the past, will run the business.
CSL’s core blood plasma operations (commercial and medical) will also be combined.
All in all, a major reshuffle for the ASX 200 health leader, though considering how messy the company’s report was, in general, it’s no great surprise.
CSL posted a 14% increase in underlying net profit, to US$3.3 billion for the 12 months to June 30, actually beating forecasts. But, with CSL Behring dishing up lower-than-expected guidance and initiatives, many weren’t happy.
That showed in the markets on Tuesday morning too, with CSL dropping -10.2% through to midday; a brutal slide for a company with such a beefy market cap.
The loss was so big it weighed on the bourse at large, helping the ASX dip -0.7%.
CSL clearly expected the red bloodbath, though, because it also spruiked a number of “transformational” changes beyond the Seqirus spinoff and plasma unification; the biotech will also be adjusting its operating model and closing several underperforming collection centres through late CY25.
That should save the company as much as $550M – but will result in up to 15% of its workforce being laid off in the process. It will also lead to CSL wearing a one-off restructuring expense of around $770M in FY26.
Whether this gets CSL back to above the $300-a-share status it enjoyed in May 2023 remains to be seen, but for the time being, markets don’t love the news.
CSL shares are worth $241.60 at time of writing on Tuesday.
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