'Waste of money': PSA blasts $10.7m spend on Callaghan Innovation layoffs

Friday, 7 November 2025

The Government’s wind-down of Callaghan Innovation has cost taxpayers almost $11 million in redundancy payouts for 209 axed roles, including 114 scientists, with more cuts expected over the next nine months, new documents show.

The Public Services Association (PSA) released figures obtained under the Official Information Act (OIA) on Friday confirming the closure of the Government’s flagship innovation agency had cost taxpayers $10.69m since 2023.

Callaghan Innovation cut 36 roles in the 2023/2024 financial years, which cost $2.87m, with 162 redundancies the following financial year coming to $5.72m.

Eleven redundancies in the current financial year have cost $2.1m to date.

The OIA also showed $68,913.54 was paid to external consultants since October 2023. The spend included legal advisory work but didn’t show how much was related specifically to the restructuring.

PSA national secretary Fleur Fitzsimons said the closure “made no economic sense” and stripped out core talent that underpinned New Zealand’s high-growth, research-driven industries.

“[It’s] a waste of public money. It should be spent on Callaghan Innovation continuing its important, innovative research,” Fitzsimons told The Post.

“The closing of Callaghan Innovation by this Government was an act of economic vandalism. It was an attack on science, and it should never have occurred.”

The agency has plunged from 367 staff to 158 since 2023, a 57% collapse in its workforce with more roles to go as the organisation is disestablished through until the end of the year.

In February, more than 60 staff were made redundant, followed by an April proposal to axe 64 more roles.

The following month, there was another announcement the 15-person Frontier Ventures unit would be cut, the day after the Government unveiled its “Growing the Economy” Budget.

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

The OIA response from Callaghan Innovation noted the future financial impact was unknown, as redundancies are “processed on a regular basis”.

Fitzsimons said the cuts dismantled world-class teams delivering commercial R&D, including the agency’s chief scientist.

“Callaghan Innovation were doing absolutely critical, groundbreaking research that would help drive the New Zealand economy. The Government should have invested in them instead of closing it down.”

Former Callaghan scientist Ben Wylie-van Eerd said many former staff had since moved offshore where there was less trouble finding work.

“These are talented scientists and engineers. Many of my colleagues have moved overseas… where their skills are valued,” Wylie-van Eerd said.

“Sadly, I don’t think they’ll be looking to come back any time soon.”

PSA said job cuts at Callaghan contributed to the 650 research roles cut across the public sector in the past year.

“It’s hard to take the Government seriously about its commitment to science,” Fitzsimons said. “We’ve seen the closure of Callaghan Innovation and the loss of hundreds of important science roles throughout the sector.”

Science, Innovation and Technology Minister Shane Reti announced in March that new science and research organisations would be up-and-running by October this year, with formal legislation to follow in 2026.

The Government’s science sector overhaul would see existing Crown Research Institutes merged into new Public Research Organisations with Crown-owned entity, Callaghan Innovation, disestablished.

In a statement, Minister Reti responded that the move was “the most significant reform of New Zealand’s science system in more than three decades” to create more long-term opportunities for scientific innovation.

“To better support and incentivise innovation for future economic growth, the Government made the decision to disestablish Callaghan Innovation and redistribute its key functions to other parts of the science, innovation and technology system. This process is now underway.”

Reti said Callaghan “struggled to work to a clear, focused purpose” across grants, advice, technical services, research, innovation support for businesses.

He said the Government had invested $70m in AI research and $71m for future materials and magnet technology as part of the new Institute of Advanced Technology, with $42m for a new biodiscovery platform.

He could not confirm that 650 research staff had been cut across the public sector.