PSA says ‘gutting’ 64 more Callaghan Innovation jobs on chopping block

Wednesday, 16 April 2025

The PSA is calling for Government intervention after more job cuts were announced at the science and innovation agency.

The Public Service Association is calling on the Government to “intervene” and stop further layoffs at Callaghan Innovation after a proposal to cut another 64 roles was announced.

That included 48 scientists in its applied technologies group and was on top of 43 redundancies progressed from February, according to the Public Service Association (PSA).

The agency was set to be fully disestablished in mid-2026.

“If this proposal goes through, we will have lost 164 roles from Callaghan Innovation since July,” PSA national secretary Fleur Fitzsimons told The Post. That equalled 42% of Callaghan Innovation’s workforce.

“We’re calling on Government to intervene and ensure scientists remain employed so they can work in applied technology innovation that the Government says its going to establish,” Fitzsimons said.

In a written statement, Science, Innovation and Technology Minister Dr Shane Reti said the agency was “spread too thin”.

“Callaghan Innovation was spread too thin across many conflicting functions – it’s struggled to work to a clear focused purpose,” Reti said.

PSA national secretary Fleur Fitzsimons says the proposed job cuts at Callaghan Innovation were at odds with Government objectives to develop the scientific sector in Aotearoa.

“To better support and incentivise innovation for economic growth, we have decided to disestablish Callaghan Innovation and establish a new Public Research Organisation to focus on delivering research in AI, synthetic biology, aerospace, medical and quantum technologies.”

Prime Minister Christopher Luxon said the science, innovation and technology agency would be disestablished in his state of the nation address in January.

Science, Innovation and Technology Minister Dr Shane Reti said in February 63 staff would be made redundant.

In February, Reti announced 63 staff would be made redundant. That included 16 commercialisation roles, 14 scientists and engineers, six Māori Innovation roles, and others working in data, digital, product design, risk and audit, marketing, government engagement and technical support.

Union figures showed there would be 224 employees working at Callaghan Innovation by October 1. Meanwhile its annual report for the 2024 full year showed it had 388 employees.

Fitzsimons said the proposal didn’t give confidence that staff skills and expertise would be retained in Aotearoa.

Callaghan Innovation would have lost 164 roles since July if the restructure proposal went through, the PSA said.

The coalition Government aimed to merge the seven Crown research institutes (CRIs) into three public research organisations (PROs), establish a fourth Advanced Technology PRO, and disestablish Callaghan Innovation.

The seven CRIs include AgResearch, the Institute of Environmental Science Research, the Institute of Geological and Nuclear Science, Landcare Research, National Institute of Water and Atmospheric Research (Niwa), Plant and Food Research and Scion.

'Today’s announcement underscores the poorly planned way in which changes in the public science sector are being implemented. There’s been little consideration as to how roles might be retained or transferred to the new PROs, risking New Zealand losing innovative experience and knowledge,' Fitzsimons said.

'When Callaghan is finally disestablished in 2026 New Zealand will have no Government agency dedicated to applied technology research despite this being a clear focus of the Government’s reforms.”

The latest redundancies affected applied technology which included staff working in AI, medical technology and robotics. Fitzsimons said that was at odds with the coalition Government’s commitment to scientific innovation on a global scale.

“Those staff are absolutely critical for New Zealand to be a world player in science. The dismissal of these experts who New Zealand desperately needs is a dereliction of duty,” she said.

'People with valuable skills are being cast aside, even though their skills are important for the future science system. The minister has said that the science reforms are not about job losses but you only have to look at Callaghan Innovation to see this simply is not true.'

Fitzsimons said while Reti extended funding for biotechnologies teams until June 30 2027, it wouldn't be enough to support the sector.

Reti said some of Callaghan Innovation’s responsibilities would be transferred to MBIE or the new PRO. “Some functions will not be transferred, so an in-principle decision has been made for the funding to be reallocated.

“I acknowledge that these changes will be challenging for staff involved, I am confident that the science reforms changes will strengthen our science system and create more opportunities for economic growth over time,“ he said.