Why Companies Are Cutting Jobs In 2023?
Why Companies Are Cutting Jobs In 2023?

Australian government agency Commonwealth Scientific and Industrial Research Organization (CSIRO) has embarked on a job-cut spree in a major restructuring bid to reduce costs and restabilize its financial situation.

About 500 jobs are reportedly under threat, which the agency's staff union warns could jeopardize its research capabilities and national scientific expertise.

CSIRO Chief Executive Doug Hilton revealed in an internal memo the non-research and support roles, including those in technical, legal, finance, and IT departments, will be the first to go. The move is aimed at saving at least AU$100 million, amid soaring inflation and increased public spending demand, ABC reported.

Hilton stated that the CSIRO was taking all necessary steps to minimize the impact on staffing, including offering voluntary redundancies.

"While these changes are essential, I fully appreciate that they are not easy," he wrote in the memo.

Amid all this, CISRO's government funding remained steady at AU$916.5 million for the 2024-25 financial year.

At least 200 jobs will be affected by the restructuring drive, with sectors like health, biosecurity, agriculture, and manufacturing suffering the most. As a result of the decision, some projects centered on nutrition, and human health, and those located in Sydney and Adelaide will likely shut down.

"The announcement that up to five hundred research support roles could be cut represents a dark day for CSIRO and is a terrible outcome for Australia's premier science agency," CSIRO Staff Association Secretary Susan Tonks said in a statement.

"These cuts are a body blow for CSIRO and have the potential to cripple research output as scientists scramble to cover support gaps. ... However, we know that research positions at CSIRO are not safe and the cuts just keep on coming," Tonks said.

The CSIRO is bracing for additional layoffs, including up to 120 at Data61 and 65 in the Environment business unit, on top of the already announced 500 job cuts.