Taxpayers fork out $10.7m in redundancy costs for Government agency Callaghan Innovation

The Callaghan Innovation workforce has been cut by 57% in under two years as the Government closes its doors next year. Photo / Supplied

The Government has forked out $10.7 million in redundancy payments in under two years as it dismantles research institute Callaghan Innovation, an Official Information Act (OIA) request shows.

Details released to the Public Service Association (PSA) reveal 209 workers were laid off at the Government-led agency between November 2023 and September 2025.

The Callaghan Innovation workforce has been reduced by 57% in that time, with roles falling from 367 to 158.

Of the 209 jobs cut, 114 are scientists and researchers, including the agency’s chief scientist.

More staff are expected to be laid off as the organisation closes its doors next year.

“This is an obscene waste of money from a Government which claims to want to spend taxpayer money wisely,” said PSA national secretary Fleur Fitzsimons.

“But more importantly, this is a critical loss of expert scientists and researchers who had more to give New Zealand.

“It will set New Zealand back for years.”

Former Callaghan Innovation scientist Ben Wylie-van Eerd, who was made redundant this year, said: “I don’t understand why the Government was so determined to shrink the science sector, that it thought spending $10m to get rid of these skilled people who still had so much to give made sense.

“Many of my colleagues have moved overseas and have been snapped up quickly by organisations in Europe and Australia where their skills are valued.”

Dr Shane Reti, Minister of Science, Innovation and Technology, said the Government is progressing the most significant reform of New Zealand’s science system in more than 30 years.

“[We’re] making the system more effective and therefore creating more opportunities long-term.

“Callaghan Innovation was spread thinly across many conflicting functions. It was tasked to deliver a wide range of grants, advice, technical services and research, alongside innovation support for businesses, and has struggled to work to a clear, focused purpose.

“Although Callaghan is closing, as part of these reforms the Government is investing in new areas of science which present new opportunities for New Zealand scientists and researchers.”

Reti said this included $70m for artificial intelligence research and $71m for future materials and magnet technology as part of the newly created New Zealand Institute of Advanced Technology.

A further $42m is going towards a new biodiscovery platform to harness the country’s unique biodiversity and support the development of high-value products, he said.

The National-led Government has slashed thousands of public sector roles since returning to power in 2023 as it looks to make cost savings.

In April, it was announced Government landlord and developer Kāinga Ora would shed 673 roles – 195 of which were vacant.

The public service shrank by 2162 people in the first six months of last year.

Callaghan Innovation was created by the National-led Government in 2013.

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