Australia’s national science agency, the Commonwealth Scientific and Industrial Research Organisation (CSIRO), is preparing for significant job reductions as part of a major organisational shift aimed at addressing long-term financial pressures.

The federal government has described the restructuring as a “necessary” step, even as scientists and unions warn that ongoing cuts will undermine Australia’s research capabilities and slow down innovation.

CSIRO confirmed that up to 350 full-time positions will be eliminated, citing a widening gap between its funding levels and the increasing cost of operating a modern scientific institution. The agency says the decision follows years of trying to sustain programs and staffing levels despite limited resources.

Chief executive Doug Hilton said the organisation must evolve if it is to remain effective.

“As custodians of CSIRO today, we must make choices that allow us to keep delivering science that benefits Australians well into the future,” Dr Hilton said.

Industry and Innovation Minister Tim Ayres echoed this view, saying the agency needs to operate with a modern and forward-focused research agenda.

“This is, of course, a challenging moment for CSIRO,” Ayres told reporters in Western Australia. “But prioritisation is essential, and the government remains committed to a strong national science agency that serves Australia’s long-term interests.”

The restructuring follows an 18-month internal review, which identified several strategic focus areas: accelerating the shift to clean and affordable energy, tackling climate change, developing advanced technologies including artificial intelligence and quantum science, strengthening biosecurity, and using disruptive engineering to resolve complex scientific challenges.

To sharpen its focus, CSIRO will scale back or phase out work in other areas. Nutrition is one field expected to be reduced, with Ayres noting that some of this research has matured or is now conducted by other organisations.

The job losses add to the 818 positions already cut over the past year and a half, a level that CSIRO Staff Association secretary Susan Tonks said surpasses cuts introduced during the Abbott government.

“These are among the most severe cuts CSIRO has ever faced,” Tonks said. “We don’t need a crystal ball to see the impact - these decisions will hurt families, farming communities, and Australia’s scientific future.”

The country’s leading science and technology body said it supports CSIRO’s goal of delivering sustainable research but argued that real progress requires more funding, not less.

“Without consistent investment in discovery and fundamental science, the innovations of tomorrow simply won’t exist,” Science and Technology Australia chief executive Ryan Winn said